The EU just fined Google $1 billion for favoring its own services in search and Play Store

[Alfonso Maruccia]

New Tariffs Incoming: European authorities designated Google as a "gatekeeper" in 2023, requiring the US corporation to address its anti-competitive practices in the online search market. Now, the EU has begun imposing financial penalties on the company because Google is still allegedly abusing its dominant position in search to promote its own services.ces.

The European Commission has announced two new fines against Google totaling $1 billion. The EU's executive body penalized the Alphabet corporation for violating rules contained in the Digital Markets Act, which imposes tighter regulations on organizations designated as "gatekeepers" in specific markets, such as online search.

In particular, the EC fined Google €460 million for one violation and €430 million for another, citing two major breaches of the DMA. Mountain View was "caught" favoring its own services through the Google Search platform and restricting third-party app developers from offering customers better commercial deals through the Google Play Store.

The EC explained that the DMA requires gatekeepers to treat third-party services fairly and in a non-discriminatory manner. However, Google was found to be giving its own services preferential treatment over competitors, consistently placing its own search results for shopping, hotels, transportation, and other business services above third-party offerings.

The second violation concerns Google Play, the app store that Google has allegedly exploited to maintain a dominant position in mobile app marketplaces. Under the DMA, app developers should be able to inform potential customers about alternative, cheaper purchase options, directing users outside Google Play to external websites or even other app stores.

Google's anti-steering practice prevented app makers from promoting these third-party offers, the EC said. The company is allowed to charge a fee for facilitating the initial acquisition of a new customer through its own store, the Commission explained, but the fees actually charged by Google and the time required to process the transactions were found to violate DMA rules.

After punishing the company with a $1 billion fine, Brussels ordered Google to make up for its DMA violations. The cloud giant must now treat third-party services featured in Search results in a fair and non-discriminatory manner while allowing Android app developers to freely promote their own payment options outside Google Play's walled garden.

Today's decision marks a significant milestone in an investigation the EC launched in 2024, a year after designating Google as a gatekeeper in the online search market. Google now has 60 days to comply with the Commission's decision or risk being hit with further fines of up to 5% of its total global revenue.

The EC acknowledged that Google engaged in a "constructive dialogue" with EU authorities but fined the company anyway. The US giant has already proposed and begun testing some changes to web search results and AI Overviews, as well as Google Play's steering terms. However, the company expressed its dissatisfaction with the new rules imposed on the European market by the DMA.

According to Google's president of global affairs, Kent Walker, the gatekeeper rules are merely forcing "product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit. Regulation should improve products, not make them worse."

The DMA is proving to be a significant driver for change in Europe's digital market, with Google and other major US corporations being forced to improve competition in the Old Continent. Earlier this month, Brussels ordered Mountain View to provide third-party AI chatbots with the same unrestricted access to Android phones as Gemini.

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The EU just fined Google $1 billion for favoring its own services in search and Play Store

 

[NumberNine]

That's a fairly substantial fine, but the common man pays with years of their life.

 

[Endymio]

The EU continues to prop up its flailing economy by stealing from US businesses and US stockholders. Anyone who has a US-based 401K should be outraged by actions like this. What business does NOT "prefer its own products and services" over those of others?

 

[Au Contraire]

I assume the EU would prefer that any successful company promote - first - its' direct competitors, and that said support be of a nature that will sooner rather than later put the original firm out of business.

One might ask to scrutinize the financial portfolios of EU administrators - at all levels. The goal would be to ensure that said administrators are not lining their own pockets nor receiving support, favors, gifts, bribes from the firms who benefit from legislation that forces others to grant "most-favoured" status to their competitors.

Oh yes ... isn't the EU Commission itself a "gatekeeper"? When will they be forced to open doors to their opponents? If not, shall they be fined? If so, it would need to be a personal liability for their corruption and/or incompetence; to prevent their failures from imposing even more penalties on the ones they purport to rule.

The problem is that I no longer believe there are any legislators - EU and elsewhere - who have the character to resist temptation. After all, empirical versus theoretical data indicates that almost every politician becomes corrupt if not already so ...

 

[DrSuess]

Say it isn't so, who would have though google would favor its own services over competing services.

 

[rmcrys]

The EU continues to prop up its flailing economy by stealing from US businesses and US stockholders. Anyone who has a US-based 401K should be outraged by actions like this. What business does NOT "prefer its own products and services" over those of others?

Oh the poor US things, trying to do Business, monopolizing everything and the EU not letting... I'm very sorry for you (no I'm not). Most US companies try to avoid taxes in the EU and also do an extreme capitalism way of business. If you want to operate in the EU, China, etc, you have to do our way.

 

[Win7user]

Good! Google needs much more of this...

 

[Endymio]

I'm very sorry for you (no I'm not). Most US companies try to avoid taxes in the EU

This isn't about taxation. Did you even read the article?

If you want to operate in the EU, China, etc, you have to do our way.

Every EU business "favors its own products and services" over those of its competitors, yet isn't the subject of massive EU fines. In fact, what Google did isn't the slightest bit illegal under EU law, unless EU regulator decide it happens "in restraint of competition" ... which means whatever they want it to mean.

 

[LordVile95]

The EU continues to prop up its flailing economy by stealing from US businesses and US stockholders. Anyone who has a US-based 401K should be outraged by actions like this. What business does NOT "prefer its own products and services" over those of others?

If I had a 401K I’d be more concerned with the AI spending.

Most of them? If the US government was doing its job it too would be enforcing its own antitrust laws regarding this too. There’s a reason why on the App Store if you search for “office apps” apples own versions are about 10th on the results.

 

[Endymio]

If I had a 401K I’d be more concerned with the AI spending.

And thus you'd always be poor, just as those who thought the Internet and even computers themselves were merely a "passing fad". But then: you're the one who recently told us that "Linus Torvalds can't write code for Linux".

There’s a reason why on the App Store if you search for “office apps” apples own versions are about 10th on the results.

When I visit the online store of most any company except Apple, I see nothing but their own products advertised. Funny, eh?

 

[LordVile95]

And thus you'd always be poor, just as those who thought the Internet and even computers themselves were merely a "passing fad". But then: you're the one who recently told us that "Linus Torvalds can't write code for Linux".

You are aware most people lost money in the dot com bubble right? Most lost 20% or more.

He can’t which is why he doesn’t? It’s not the 90’s anymore. He has literally stated that he is not a programmer and does not code for Linux anymore.

When I visit the online store of most any company except Apple, I see nothing but their own products advertised. Funny, eh?

Can you list another mobile operating system provider with a store? Appel doesn’t do it becaure they would be hammered by antitrust like Google is in the EU and should be in the US. Microsoft tried it in the 90’s on desktop and got hammered by antitrust as they should have.

 

[rmcrys]

This isn't about taxation. Did you even read the article?


Every EU business "favors its own products and services" over those of its competitors, yet isn't the subject of massive EU fines. In fact, what Google did isn't the slightest bit illegal under EU law, unless EU regulator decide it happens "in restraint of competition" ... which means whatever they want it to mean.

It is about agreements with the US that, on the long run (EU politicians fault), have been very unfair to the EU. So with this there is only one way of getting that money back: as soon as some US company does not comply with the EU regulations, it gets a fine. Many US companies know the EU regulations and that fairness is demanded. When a US company plays "dumb", it gets a fine.

So should be with every single EU and non EU company: play by the book and pay all the taxes they should. The EU is already giving too much social help to too much people, as well as jail free cards.

 

[dangh]

Say it isn't so, who would have though google would favor its own services over competing services.

No one asking for that. The only point is, 3rd party apps should have same access to phone functionality as Google apps. Otherwise you can't have competing ai app if this app can't set up time or calendar entry.

 

[Endymio]

It is about agreements with the US that, on the long run (EU politicians fault), have been very unfair to the EU. So with this there is only one way of getting that money back

So you admit these fines are simply an excuse to soak money from US firms, due to perceived unfairness in other agreements. Got it.

... as soon as some US company does not comply with the EU regulations, it gets a fine

Google is complying with all EU regulations. Firms in the EU are allowed to "favor their own products and services" ... as long as they're a European company.

 

[LordVile95]

So you admit these fines are simply an excuse to soak money from US firms, due to perceived unfairness in other agreements. Got it.


Google is complying with all EU regulations. Firms in the EU are allowed to "favor their own products and services" ... as long as they're a European company.

Can you list an EU company that is being allowed to do this?

 

[Endymio]

Can you list an EU company that is being allowed to do this?

Glad to! Of the hundreds of thousands of EU firms which do this, I'll name just the largest app publisher in Europe: Spotify. Search their site carefully, and see if you can find ANY reference to anything but "their own products and services". Why do they not give equal time to other streaming music services?

Spotify - Web Player: Music for everyone

Spotify is a digital music service that gives you access to millions of songs.

open.spotify.com

More importantly: why does the EU not fine them for failing to do so? In fact, though you can download Spotify from Apple but not the reverse, it was Spotify who filed a complaint against Apple -- and the EU fined Apple, not Spotify.

 

[LordVile95]

Glad to! Of the hundreds of thousands of EU firms which do this, I'll name just the largest app publisher in Europe: Spotify. Search their site carefully, and see if you can find ANY reference to anything but "their own products and services". Why do they not give equal time to other streaming music services?

Spotify - Web Player: Music for everyone

Spotify is a digital music service that gives you access to millions of songs.

open.spotify.com

More importantly: why does the EU not fine them for failing to do so? In fact, though you can download Spotify from Apple but not the reverse, it was Spotify who filed a complaint against Apple -- and the EU fined Apple, not Spotify.

Spotify is a subscription based service not a store. They publish their own app on other stores. Please try again.

Because Spotify aren’t doing what Google is?

 

[Endymio]

Spotify is a service not a store. They publish their own app on other stores. Please try again.

Was that a joke? Spotify is a business that sells a service, and use their website and their app as a storefront for sure. Do you even know what the word "store" means? But what would one expect from someone who claims Linus Torvalds "can't program in Linux", eh?

Here: I'll help you out.

Wix.com: "An online store is a website or mobile app where people buy and sell products or services over the internet....."

In any case, I can list tens of thousands of European brick-and-mortar stores that follow the same practice: they advertise and promote ONLY their own products ... not those of their competitors.

 

[LordVile95]

Was that a joke? Spotify is a business that sells a service, and use their website and their app as a storefront for sure. Do you even know what the word "store" means? But what would one expect from someone who claims Linus Torvalds "can't program in Linux", eh?

I don’t think you know what a storefront is.

Here: I'll help you out.

Wix.com: "An online store is a website or mobile app where people buy and sell products or services over the internet....."

In any case, I can list tens of thousands of European brick-and-mortar stores that follow the same practice: they advertise and promote ONLY their own products ... not those of their competitors.

I really don’t think you’re understanding the issue and how it is a breach of antitrust if this is the issue you’re trying to focus on. Can I ask what service that is on Spotify’s “storefront” that it is prioritising its own over?

 

[Endymio]

I don’t think you know what a storefront is.

You can't wiggle out of this one. Spotify's website and app is a means for selling their products and services, just as Google's app store is. Spotify -- and every other EU business -- prefers their own products and services, usually to the point that they exclude all other competitors entirely. Google at least allows competitors.

I really don’t think you’re understanding the issue and how it is a breach of antitrust

You've just admitted my point. Google was fined not for violating a law, but because a group of EU regulators decided -- using incredibly vague and ambiguous terms -- that Google had done what every European company does ... but had done it "in restraint of trade".

Can I ask what service that is on Spotify’s “storefront” that it is prioritising its own over?

Was this a joke, or did you fail to understand plain English? Spotify uses its storefront to sell its own service only. It doesn't market, advertise, sell, or even allow mention of any competitors.

 

[LordVile95]

You can't wiggle out of this one. Spotify's website and app is a means for selling their products and services, just as Google's app store is. Spotify -- and every other EU business -- prefers their own products and services, usually to the point that they exclude all other competitors entirely. Google at least allows competitors.

No, googles storefront sells a variety of applications and that is its entire purpose. Spotify has a website that allows you access to their service. It’s not the same thing.

You've just admitted my point. Google was fined not for violating a law, but because a group of EU regulators decided -- using incredibly vague and ambiguous terms -- that Google had done what every European company does ... but had done it "in restraint of trade".

Nope. You’re not understanding basically anything here.

Was this a joke, or did you fail to understand plain English? Spotify uses its storefront to sell its own service only. It doesn't market, advertise, sell, or even allow mention of any competitors.

It uses a webpage to allow you to sign up for an account, which is free, and then you can sign up for a paid account. Spotify in no way in that process inflates its own services to a position over others based a a search enquiry.

The entire issue is that google, on the play store, preferentially lists its own applications higher than they should be (using its own criteria) to promote them artificially. You’re not allowed to do that. It’s similar to Microsoft’s IE lawsuit where they bundled IE with every windows computer and then made it so 3rd party browsers were difficult to install and performed worse, Google is using its position to push its own apps to users at the top of the page and burying better applications in the hopes people will take the first option.

Also Spotify is at about 30% of its market vs androids 70% and there’s a lot of competition in the space vs effectively none on the “open source” Android where nearly all downloads outside of China are through the play store.

 

[Endymio]

No, googles storefront sells a variety of applications and that is its entire purpose. Spotify has a website that allows you access to their service. It’s not the same thing.

I can't tell if you're joking or being intentionally obtuse. Spotify's site allows you to purchase their service in addition to accessing it. Here's another example, from SAP: Europe's largest software company:

SAP Software Solutions | Business Applications and Technology

Explore market-leading software and technology from SAP. Become an intelligent, sustainable enterprise with the best in cloud, platform, and sustainability solutions – no matter your industry or size.

www.sap.com

You can find dozens of their products and services on their site ... but not one single product or service from another firm. That's far worse than Google. SAP even has a search function on that site, to allow you to "find the best solution for your problem". Try a few searches, see if any of SAP's competitors appear.

Yeah, I thought not.

Spotify in no way in that process inflates its own services to a position over others based a a search enquiry.

This is even more absurd. Spotify "inflates its own services" by refusing any access, sales, or even mention of its competitors. Type in any track into Spotify's search function, and you will get nothing but Spotify results. Search the Spotify site and app from start to finish, and see if you can do what Google allows, which is purchase products from their competitors.

Also Spotify is at about 30% of its market vs androids 70%

You make my point for me. The EU is penalizing success. And Spotify has been in the past as high as 44% of the market, higher than Apple was when the EU penalized them.

Next time think before you post.

 

[DrSuess]

No one asking for that. The only point is, 3rd party apps should have same access to phone functionality as Google apps. Otherwise you can't have competing ai app if this app can't set up time or calendar entry.

My point is who didn't see this coming without oversight or legislation.

 

[Endymio]

My point is who didn't see this coming without oversight or legislation.

You want government to dictate to software companies how to write their products, Herr Suess?

 

[LordVile95]

I can't tell if you're joking or being intentionally obtuse. Spotify's site allows you to purchase their service in addition to accessing it. Here's another example, from SAP: Europe's largest software company:

SAP Software Solutions | Business Applications and Technology

Explore market-leading software and technology from SAP. Become an intelligent, sustainable enterprise with the best in cloud, platform, and sustainability solutions – no matter your industry or size.

www.sap.com

You can find dozens of their products and services on their site ... but not one single product or service from another firm. That's far worse than Google. SAP even has a search function on that site, to allow you to "find the best solution for your problem". Try a few searches, see if any of SAP's competitors appear.

Yeah, I thought not.

Again you’re not understanding the issue, probably due to xenophobia.

This is even more absurd. Spotify "inflates its own services" by refusing any access, sales, or even mention of its competitors. Type in any track into Spotify's search function, and you will get nothing but Spotify results. Search the Spotify site and app from start to finish, and see if you can do what Google allows, which is purchase products from their competitors.

Again no they don’t. You have to specifically access the Spotify site or app to buy it, it’s not a general storefront. It would be like going into Tesla and complaining they don’t sell Toyotas, you went to the Tesla dealership. You go on the play store for 3rd party apps not just googles.

You make my point for me. The EU is penalizing success. And Spotify has been in the past as high as 44% of the market, higher than Apple was when the EU penalized them.

Again no they’re penalising those breaking regulations.

Next time think before you post.

Maybe you should take your own advice.