EU fines Google €890m for competition breaches over search and apps

The European Union (EU) has fined Google a total of €890 million for breaking online competition rules. These rules concern Google’s search engine and its app store services.

The European Commission, which is the EU’s executive branch, stated that Google violated the Digital Markets Act (DMA). The commission found that Google had favoured its own services, such as those for shopping and hotel bookings, in its search results. These own services were given priority over those of competing businesses.

Furthermore, Google was found to have broken the DMA by not allowing app developers to direct customers to cheaper deals or alternative app stores. This includes directing them to better prices for subscriptions.

The total fine is divided into two parts: €460 million for the breach related to search results and €430 million for the violation concerning the app store. The commission has instructed Google to ensure that third-party services appearing in its search results are treated equally and without favouritism. It must also permit app developers to offer deals to consumers outside of Google’s official app store.

Google has already begun testing changes to how it presents its own services in search results. The commission acknowledged that these changes show significant progress towards meeting the required standards. An EU official mentioned that consumers will be the main beneficiaries of this decision, and that search results in Europe will become different as the company adapts its engine.

Max von Thun, director of the Open Markets Institute Europe thinktank, described the fines as the absolute minimum, considering Google’s substantial revenue of over $400 billion last year. He urged the commission to act swiftly to stop Google’s anti-competitive practices permanently, emphasizing that European startups and innovators cannot afford further delays.

This decision comes at a time when temporary global tariffs against around 60 countries are set to expire. An EU official stated that they were unaware of how the US president might react. They maintained that the EU has the independent right to regulate US tech companies within its own territory and that the timing of the fine was not linked to the tariffs.

Previously, Apple and Meta (Facebook and Instagram’s parent company) were also fined under the DMA. Apple paid €500 million for practices that restricted competition in its app store, while Meta was fined €200 million for its advertising model that offered an ad-free option for a fee.

Google has the right to appeal this decision and can request temporary measures, such as pausing the implementation of the fine. Kent Walker, Google’s president of global affairs, called the fine a result of product changes caused by a few self-interested complaints. He argued that these changes will negatively affect European businesses and consumers.

Walker explained that the DMA is forcing Google to remove popular features, such as instant price comparisons and direct booking options for hotels, flights, and restaurants. He also claimed it compels Google to weaken safety protections on the Google Play store.