Google has been hit with a €890 million ($1 billion) fine by the European Union for violating competition rules, becoming the first company to be penalised under the bloc’s new Digital Markets Act (DMA).
The European Commission announced the decision after concluding that Google unfairly gave priority to its own services, including shopping, hotel booking and transport platforms, over those of rival businesses in its search results.
According to regulators, the company also restricted app developers on the Google Play Store from directing users to alternative payment methods or cheaper offers outside the platform.
The Commission said these practices limited competition and reduced consumer choice, violating the rules introduced under the Digital Markets Act to ensure a fair digital marketplace.
The total penalty is made up of two separate fines.
Google was fined €460 million ($524.7 million) for favouring its own services in search results, while an additional €430 million ($490 million) was imposed over restrictions placed on app developers in the Play Store.
European regulators said the size of the fine reflects the seriousness and duration of the violations, stressing that the Digital Markets Act is designed to create a level playing field for businesses operating in the digital economy.
The decision marks the first major enforcement action under the EU’s landmark digital competition law.
Source: European Commission.
