The European Commission (EC) announced on Thursday (July 23) that it has fined Google 890 million euros for violating online competition law through its search services and app store.
“The European Commission adopted two decisions by which it found that Google does not comply with the provisions of the Digital Markets Act (DMA): by favoring its own services in Google Search and by imposing restrictions that prevent companies from directing consumers to alternative, often cheaper purchase channels through Google Play (so-called anti-steering).
In this context, the Commission fined Google EUR 460 million for violations related to Google Search and EUR 430 million for practices in Google Play.” send the EC in a statement.
The institution specifies that, according to the DMA, “gatekeeper” companies, i.e. digital platforms with a dominant position, are not allowed to favor their own services in the ranking of search results to the detriment of the services offered by third parties.
They must apply transparent, fair and non-discriminatory criteria, warns the EC.
“The Commission found that Google gives preferential treatment to its own services, including those for shopping, hotels, transport and sports results, compared to competing services displayed in Google Search, thereby violating its obligations under the DMA.
Google displays its own services in a more advantageous position in search results, including at the top of the page or using visual elements and special filters, while similar services from other companies do not enjoy the same visibility”the release states.
The European Commission found that Google prevented app developers from informing users about alternative, cheaper offers and directing them to third-party websites or app stores to make purchases, in breach of the DMA.
“Although Google may charge a fee for facilitating the acquisition of a new customer through Google Play, the Commission has assessed that the level of fees charged for these targeting practices and the duration for which they are applied exceed what is considered compliant with the provisions of the DMA.
Through the two decisions adopted today, the European Commission has ordered Google to cease practices that violate the Digital Markets Act”according to EC.
AliExpress, fined 550 million euros
On Monday, July 20, the EC announced that it had fined online commerce platform AliExpress €550 million after finding that it did not take sufficient action to stop the sale of illegal, counterfeit or unsafe products in the EU.
The penalty is the largest ever imposed under the Digital Services Act (DSA).
“The spread of counterfeit clothes, unsafe toys, dangerous cosmetics and other illegal or harmful products is not an inevitable cost of online shopping, but the result of AliExpress failing to comply with its obligations under the Digital Services Regulation,” said Henna Virkkunen, Executive Vice-President of the European Commission responsible for technology, security and democracy.
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