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EU Fines Google €890 Million for Breaching Digital Competition Rules

The European Commission has fined Google €890 million, approximately $1 billion, after finding that the technology company violated the European Union’s Digital Markets Act. The penalties relate to two separate…

The European Commission has fined Google €890 million, approximately $1 billion, after finding that the technology company violated the European Union’s Digital Markets Act.

The penalties relate to two separate breaches involving Google Search and the Google Play Store. The Commission imposed a €460 million fine over the preferential treatment of Google-owned services in search results and an additional €430 million fine for restrictions placed on app developers.

According to CNN Business, EU regulators found that Google gave its hotel, shopping, transport and sports services greater visibility than competing platforms. These services were reportedly placed more prominently in search results through enhanced images, filters and higher-ranking positions.

Henna Virkkunen, the European commissioner responsible for technology sovereignty, said the company’s practices disadvantaged businesses offering similar services by denying them equal prominence on Google Search.

The Commission also found that Google restricted app developers from directing customers to alternative purchasing channels, including third-party app stores and websites where cheaper offers might be available. Under the Digital Markets Act, developers should be allowed to inform users about such alternatives without unreasonable restrictions.

EU regulators ordered Google to end the practices and comply fully with the bloc’s digital competition rules. The Commission said the size of the fines reflected the seriousness and duration of the violations, although it acknowledged that Google had begun testing and introducing some changes.

Google rejected the Commission’s decision, arguing that the Digital Markets Act was forcing it to remove useful features from products used by European consumers.

The company’s global affairs president, Kent Walker, said complying with the decision could affect real-time search features that provide pricing and availability information for hotels, flights and restaurants. He also argued that the changes could weaken some protections offered through Google Play.

European Commissioner Teresa Ribera defended the decision, saying products should succeed because of their quality rather than because they are owned by the company operating the search engine.

The ruling underscores the European Union’s continued effort to limit the market dominance of major technology companies and promote fair competition across digital platforms.