EU fines Google €890 million for violating Digital Markets Act

The European Commission has fined Google €890 million ($1 billion) for breaching the Digital Markets Act (DMA), marking the first penalty against the tech giant under the landmark regulation. The fine comprises two violations: €460 million for giving preferential treatment to its own services in search results (e.g., Google Shopping, Flights, Hotels) over rivals, and €430 million for anti-steering practices that prevented app developers from directing users to cheaper offers outside Google Play Source: BBC.

Reactions

Google fiercely criticized the decision. Kent Walker, President of Global Affairs, argued that compliance forces "product degradation" and harms European users Source: Ars Technica. In contrast, EU Competition Commissioner Teresa Ribera stated, "The best products should succeed because they’re better, not because they’re owned by the company running the search engine" Source: Wired. The EC also noted Google's recent changes show "progress towards compliance" Source: The Verge.

Transatlantic tensions

The fine comes as the Trump administration has warned that such actions threaten trade relations. U.S. Trade Representative Jamieson Greer argued that the EU continues to "target the most competitive U.S. companies" Source: Fox Business. However, EU officials insisted the regulation applies equally to all companies, with Michael McGrath saying, "There's certainly no question of targeting companies based on their country of origin" Source: Fox Business. Google has 60 days to comply or face additional daily penalties .