EU fines Google $1B for Search and Play Store violations
What's the story
The European Commission has slapped a hefty €890 million ($1 billion) fine on tech giant Google. The penalty comes after the company was found guilty of breaching online competition laws through its search and app store services. The commission said that Google violated the Digital Markets Act by favoring its own services in search results over those of competitors.
Competition breaches
Google blocked app developers from directing users to cheaper deals
The European Commission also accused Google of blocking app developers from directing users to cheaper deals on websites or other app stores.
These practices were seen as violations of the Digital Markets Act (DMA).
As a result, Google was fined €460 million for the search-related breach and another €430 million for the violation related to its app store.
Compliance expectations
Google directed to treat 3rd-party services in 'fair' manner
Along with the fines, the European Commission has directed Google to treat third-party services appearing in its search results in a "fair and non-discriminatory manner."
The commission also asked the tech giant to let app developers make offers outside of Google's app store.
It noted that Google had already begun testing changes to how it displays search results featuring its own services such as shopping and flights.
Future changes
Consumers will be direct beneficiaries of this decision, says EU
A senior official from the EU said that consumers will be the direct beneficiaries of this decision.
They added that research results will be different in Europe and Google will have to adapt its search engine going forward.
The official also denied any connection between the timing of this fine and Donald Trump's temporary global tariffs against about 60 countries expiring today.