Europe slaps Google with €890 mil. fine for prioritizing own services in search results
The European Commission has slapped Google with two fines totalling €890 million for violating the Digital Markets Act (DMA). According to the Commission, Google violates European law by self-preferencing its own services in Google Search results and restricting businesses from directing consumers to alternative and often cheaper options.
The DMA states that gatekeepers like Google cannot treat their own services more favorably than third-party services in ranking and must apply transparent, fair, and non-discriminatory conditions to such ranking.
According to the European Commission, Google gives preferential treatment to its own services over those of third parties in Google Search, thereby breaching its obligations under the DMA. “Google displays its own services more prominently in search results, including at the top of the search results page or by using enhanced visuals and filters, while similar third-party services do not have the same prominence.”
The DMA also states that app developers that distribute their apps via Google Play must be able to inform consumers of alternative offers free of charge, and to direct them to those offers on websites or alternative app stores, for example.
The Commission found that Google also failed to comply with that obligation. “Google prevents app developers from freely communicating and promoting offers and concluding contracts with users in distribution channels of their choice, including third-party app stores.”
Google is allowed to charge a fee for facilitating the initial acquisition of a new customer, but according to the Commission, the level of these fees and the length of the charging period go beyond compliance with the DMA.
The European Commission fined Google €460 million for the first offense and €430 million for the second offense, also instructing the American Big Tech company to bring an end to its non-compliance with European laws and regulations.
The European Commission has been cracking down on violations of its DMA and Digital Services Act, targeting Big Tech companies in particular. Last week, Brussels concluded in interim results that Meta was violating this law with Instagram and Facebook’s addictive designs. Previously, the Commission also fined X, and it is still investigating Snapchat and TikTok.