Google Hit With €890 Million EU Fine for Favouring Own Services

The European Union has imposed a €890 million ($1 billion) fine on Google, accusing the technology giant of violating the bloc's digital antitrust rules by using its dominant platforms to favour its own services and apps over competitors.

The European Commission, the EU's executive arm, said Google had leveraged Google Play and its widely used search engine to steer consumers towards its own offerings, limiting competition and reducing consumer choice. The action marks the latest major regulatory crackdown by Brussels on Big Tech companies, as European authorities continue efforts to curb the market power of major technology firms.

The decision comes shortly after Google lost an appeal against a separate $4.5 billion antitrust penalty imposed over allegations that its dominance of the Android mobile operating system had restricted competition and consumer choice.

EU officials defended the latest action as necessary to protect consumers and promote fair competition. Teresa Ribera, the European Commission's Executive Vice President for Clean, Just and Competitive Transition, said the best products should succeed based on their quality rather than being favoured because they are owned by the company operating a dominant search engine. She also argued that European consumers should be able to access information about alternative offers from app developers, even when Google's app store does not receive a share of the transaction.

Google President of Global Affairs Kent Walker criticised the decision, describing the fine as "product degradation driven by a small group of self-serving complainants." He warned that the EU's regulatory approach could negatively affect European businesses and consumers.

Walker also claimed that compliance with the Digital Markets Act (DMA) was forcing Google to remove or alter popular search features, including real-time information on prices and availability for hotels, flights and restaurants, while also weakening certain safety protections on Google Play.

The European Commission, however, maintained that gatekeepers must ensure fair competition, while consumers should have the freedom to choose cheaper alternatives.