Europe fines Google $1 billion for ‘harming’ rivals in a first under sweeping online law

By Hanna Ziady, CNN

London (CNN) — The European Union has fined Google €890 million ($1 billion) for breaching rules designed to promote competition in digital services, the first time the company has been penalized under the bloc’s landmark Digital Markets Act (DMA).

The fines highlight Europe’s resolve to rein in the power of Big Tech, despite US President Donald Trump threatening to respond with “substantial additional tariffs” on European goods.

The European Commission, the EU’s executive arm, said Thursday that Google had failed to comply with the DMA by promoting its own services, including for hotels, shopping and transport, on Google Search over those of competitors and by restricting the way app developers sell services to customers.

“We found that Google harms businesses offering similar services, such as shopping or sports, by not granting them the same level of prominence on Google Search,” Henna Virkkunen, the European commisioner in charge of tech sovereignty said in a statement.

“We also found that Google has restricted app developers from offering cheaper offers to customers in the Google Play app store,” she added.

It fined the company €460 million ($524.7 million) and €430 million ($490 million) respectively, for the two separate misdemeanours. The fines took into account “the gravity and duration” of Google’s non-compliance, the European Commission said, although it noted that Google had already begun testing and rolling out some changes following “a constructive dialogue.”

According to the commission, Google displays its own services more prominently than rivals, including by placing them at the top of the search results page and by “using enhanced visuals and filters.”

Google also prevents app developers from promoting offers and entering into contracts with customers in distribution channels of their choice, including third-party app stores, the commission said.

Google has 60 days to implement measures directed by the commission, or face further penalties, including allowing app developers to enter into contracts with users outside the Google Play app store.

Google hit back at the commission’s decision, claiming the DMA “continues to break everyday products.”

“To comply, we are having to strip away real-time Search features Europeans love – like instant pricing and direct availability for hotels, flihghts and restaurants – and dismantle safety protections on Google Play,” global affairs president Kent Walker said in a statement.

“This isn’t fair competition; it’s product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit.”

The commission said it “continues to engage with Google to ensure compliance with its decisions and the DMA more generally.”

“The best products should succeed because they’re better, not because they’re owned by the company running the search engine,” European commissioner Teresa Ribera added in the statement.

“And European consumers have a right to be told by app developers where to sign up to the best offers, even when the app store owner does not get a cut,” she said.

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