New Delhi–The European Commission has fined Google a combined 890 million euros, or about $1 billion, for allegedly favoring its own services and restricting competition within its app ecosystem.
The European Union’s executive arm imposed a 460 million euro penalty over Google’s search practices and a separate 430 million euro fine related to rules governing the Google Play app store.
Google must comply with the Commission’s decisions within 60 days or face periodic penalties of up to 5 percent of its total worldwide revenue.
The Commission said Google violated the Digital Markets Act by giving preferential treatment to its own shopping, hotel, transportation and sports services in search results over competing services operated by third parties.
“Google has fallen short of effective compliance with the Digital Markets Act, and today we have taken decisive yet balanced enforcement action sanctioning these breaches. The best products should succeed because they’re better, not because they’re owned by the company running the search engine,” said Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition.
The Digital Markets Act requires app developers distributing products through Google Play to be able to inform customers, without charge, about alternative and potentially less expensive offers. Developers must also be allowed to direct users to websites, third-party app stores or other channels to complete purchases.
The Commission said Google failed to meet those requirements by preventing developers from freely promoting offers and entering into contracts with users through distribution channels of their choice, including competing app stores.
Regulators ordered Google to end the practices and implement measures ensuring that third-party services appearing in search results are treated fairly and without discrimination compared with Google’s own services.
Google must also allow developers using the Play Store to communicate with users, promote alternative offers and complete transactions both within and outside Google’s app marketplace, the Commission said. (Source: IANS)
