The European Commission fined Google approximately $1 billion on Thursday for manipulating search results to disadvantage competitors and blocking app developers from directing users to cheaper deals outside its Play store, according to axios.com. The penalty is split between $524 million for search violations and $490 million for Play store breaches. This marks the first enforcement action against Google under the Digital Markets Act and the third against any company, following Apple and Meta last year.
The commission also ordered Google to change how it ranks rival services in its search results and how it operates its Play store. Google has 60 days to comply with the new rules. The European Commission described Google's proposed search changes as "substantial progress towards compliance" and its Play store changes as "good progress." It will continue discussions with Google to assess the impact on the company’s AI Overviews and AI Mode features, axios.com reported.
This fine comes a day before the White House is expected to announce new tariffs, following a warning from U.S. Trade Representative Jamieson Greer to the EU about imposing fees on U.S. tech firms. The Digital Markets Act aims to ensure fair competition by requiring Google to treat third-party services fairly and allow app developers to communicate freely with their customers outside the Play store, setting a precedent for regulatory scrutiny of major tech platforms in Europe.
The European Commission’s decision requires Google to comply within 60 days, with ongoing monitoring of its search and Play store operations. This enforcement action highlights the EU’s commitment to regulating digital markets and ensuring competitive practices among dominant tech companies, per axios.com.