EU Fines Google €890 Million for DMA Violations

The European Commission fined Google €890 million for two violations of the Digital Markets Act (DMA), one tied to Google Search and the other relating to the Google Play Store.

“Today, the European Commission took two decisions finding non-compliance by Google with the Digital Markets Act (DMA) for self-preferencing its own services on Google Search, and for putting in place restrictions on businesses to direct consumers to alternative, often cheaper, purchase channels on Google Play (steering),” the Commission announced. “In this regard, the Commission issued Google a fine of €460 million and a fine of €430 million respectively.”

The DMA requires gatekeepers like Google to not give preferential treatment to their own services, but Google is doing just that with Search. It displays its own services, including those tied to shopping, hotels, transport and sport, above those of third-party services in Search results, while giving them enhanced visuals.

The DMA also requires gatekeepers like Google to allow app developers to inform their customers, free of charge, about alternative, often less expensive payment alternatives. Here, too, Google is in violation, in this case for preventing app developers from freely communicating and promoting offers in the distribution channels of their choice, which can include third-party app stores. Google is allowed to receive a fee for facilitating new customer acquisitions through the Play Store, but the fees it charges are too high, the Commission says, and the period of time during which it charges these fees is too long.

“As part of today’s two decisions, the Commission has ordered Google to bring the non-compliance to an end,” the announcement continues. “In particular, Google must implement measures to treat third-party services that feature on Google’s search results in a fair and non-discriminatory manner by reference to its own services, and allow app developers distributing their apps via Google Play Store, both technically and contractually, to freely communicate, promote offers and conclude contracts with users not only within but also outside the Google Play app store.”

If Google doesn’t comply with this order within 60 days, the Commission will fine Google up to 5 percent of its total worldwide turnover periodically until it does so. But Google may decide to appeal today’s decisions, it notes.