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

The European Union has fined Google a total of €890m for breaking competition rules with its search engine and app store services. The European Commission, which is the EU's executive branch, stated that Google violated the Digital Markets Act (DMA). The law requires large tech companies to operate more fairly.

According to the commission, Google favoured its own services, such as shopping comparisons and hotel information, in its search results over those offered by competitors. This practice was found to be unfair competition. Additionally, the company was criticised for stopping app developers from directing users to cheaper deals, including subscriptions, found on other websites or alternative app stores.

Google received a €460m fine for the issues related to its search engine and another €430m fine for the problems concerning its app store. The commission has ordered Google to ensure that any third-party services appearing in its search results are treated in an equitable and non-preferential way. They must also permit app developers the freedom to promote offers and services available outside of Google's official app store.

The company 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 DMA's requirements. A senior EU official commented that consumers will be the main beneficiaries of this decision, and that European search results will become different as Google adapts its engine moving forward.

Max von Thun, director of the Open Markets Institute Europe, described the fines as the absolute minimum, considering Google’s substantial annual revenue of over $400bn. He urged the commission to act swiftly to compel Google to permanently cease its anti-competitive actions, highlighting that Europe’s emerging businesses and innovators cannot afford further delays.

This decision by the EU comes shortly before a period of temporary global tariffs against around 60 countries is set to expire. An EU official stated they were unaware of how former US President Donald Trump might react. They emphasised that the EU has the independent right to regulate American tech firms within its own territory and that the timing of the fine was coincidental, not related to the tariffs.

In the past year, Apple and Meta (Facebook and Instagram’s parent company) also faced fines under the DMA. Apple was fined €500m for anti-competitive practices within its app store, while Meta was fined €200m regarding its advertising model that required users to either pay for an ad-free experience or consent to data usage.