The European Union (EU) has imposed a hefty fine on Google for violating the Digital Markets Act (DMA), raising concerns about renewed trade tensions between the U.S. and Europe.
On July 23, the EU Commission announced that Google had breached the DMA by prioritizing its own services in search results and restricting access to cheaper app purchase channels for consumers on Google Play. The total fine amounts to €890 million, with €460 million for the search result issue and €430 million for the app distribution violation.
The EU Commission stated that as a designated gatekeeper under the DMA, Google is prohibited from favoring its own services over those of third parties. It noted that Google had provided its own services, such as hotel, transportation, and sports results, preferentially in search results, using enhanced visual elements and filters to make them more prominent than similar third-party services.
Additionally, app developers distributing their apps through Google Play should be able to inform customers that they can purchase the same apps through other channels at lower prices. However, the EU Commission found that Google had not complied with this DMA regulation.
The EU Commission ordered Google to treat third-party services fairly in search results and to allow app developers to communicate freely with users regarding promotions and contracts. Google has 60 days to comply with this decision, or it may face periodic fines of up to 5% of its global revenue.
EU Commissioner for Competition, Margrethe Vestager, described the action as a strong measure, sending a significant message to Google.
Google recently lost an appeal at the European Court of Justice regarding a €4.125 billion fine for abusing its dominant market position, marking another setback for the company in Europe.
Concerns have been raised that this action could reignite trade tensions between the U.S. and Europe. The Financial Times reported that former President Donald Trump has criticized EU digital market fines as 'extortion' or 'essentially a tax,' suggesting that the U.S., home to many major tech companies, might retaliate.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.