The European Commission issued Google a fine of €460 million and a fine of €430 million amid non-compliance on 23 July.
The decisions came after 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.
Donald Trump has threatened the European Union with fresh, “substantial” tariffs after Brussels slapped hefty fines on US tech giants.
The US president accused the EU of unfairly targeting American companies such as Apple, Meta, Amazon and Google, declaring in a Truth Social post: “The United States of America is not Europe’s piggy bank, and we won’t let it become one.”
Despite challenges from the supreme court, Trump has been persistent in implementing tariffs globally.
The tariffs he announced yesterday would impose a 10% levy on the EU and were designed to clamp down on what Trump claimed were unfair labour practices.
Since passing the DMA in 2022 the EU has been cracking down on large tech companies in order to help regulate the competition among digital media companies.
Why was Google fined?
The European Commission found that Google unfairly favours its own services in search results over rival websites, breaking the EU’s Digital Markets Act. Google gives greater prominence to its shopping, hotel, travel and sports services, making them more visible than competitors’ offerings.
In addition, the EU also found that Google unfairly restricted app developers from directing users to cheaper offers outside the Google Play Store.
Regulators said developers should be free to promote alternative payment options and app stores and ordered Google to change its practices to comply with the Digital Markets Act.
While Google has begun testing changes to its search results and app store policies, the European Commission said it will continue monitoring the company’s compliance.
The fines imposed have taken into account the gravity and duration of the non-compliance. Should Google fail to comply with the Commission’s decisions within 60 days it risks periodic penalty payments of up to 5% of its total worldwide turnover.
Google may still decide to appeal the decision.
