EU hits Google with $1 billion fine over Play and search
The European Commission says Google steered users toward its own services; Google says the rules will make its products worse for Europeans.
By Sal Moretti · Money Reporter
3 min read
Google has been fined 890 million euros, about $1 billion, by the European Union after regulators said the company used Google Play and its search engine to push people toward its own apps and services.
The European Commission, the EU’s executive branch, announced the penalty in Brussels on Thursday. It said Google’s setup harmed rival companies by favoring Google’s own offerings in places where consumers search, browse and download apps.
Google rejected the decision. Kent Walker, the company’s president of global affairs, said the enforcement action would hurt European users and businesses by forcing changes to products they already use.
EU says users deserve a fair choice
Teresa Ribera, the commission’s executive vice president for clean, just and competitive transition, said the case was about whether rivals can win customers on merit.
“The best products should succeed because they're better, not because they're owned by the company running the search engine,” Ribera said. “And European consumers have a right to be told by app developers where to sign up to the best offers, even when the app store owner does not get a cut.”
European Commission spokesperson Thomas Regnier said companies operating under EU rules have obligations when they control major digital platforms.
“In the EU, businesses have the right to compete fairly. Gatekeepers have the obligation to ensure a level playing field and consumers the right to choose for cheaper alternative offers,” Regnier said.
The move adds another major EU action against a large technology company. Brussels has taken a leading role in policing global tech firms, including companies based in Silicon Valley and Beijing.
Google says the rules will weaken products
Walker said the EU’s Digital Markets Act requires Google to remove features from search results that many Europeans use. He pointed to real-time tools for hotels, flights and restaurants, including instant prices and direct availability.
He also said the rules would require Google to remove safety protections from Google Play.
According to Reuters, Walker argued that the case was “product degradation driven by a small group of self-serving complainants,” and said European companies and consumers would bear the cost.
“Regulation should improve products, not make them worse,” Walker said, according to Reuters.
Another antitrust fight for Google in Europe
The fine follows another major antitrust setback for Google in Europe. The company recently lost an appeal over a $4.5 billion penalty tied to its Android mobile operating system.
In that earlier case, regulators accused Google of limiting competition and reducing consumer choice through Android’s market power.
The new penalty keeps Google at the center of the EU’s campaign to enforce competition rules in digital markets, with regulators saying consumers should be able to choose cheaper alternatives and rivals should be able to compete fairly.
This story draws on original reporting from CBS News.