European regulators hit Google with an 890 million euro ($1 billion) fine, the company’s first under the EU’s Digital Markets Act. The European Commission said Google favours its own shopping and hotel services in search and blocks app developers from steering users to cheaper offers.
European regulators fined Google 890 million euros ($1 billion), alleging the company gives preferential treatment to its own services. The penalty is Google’s first under the European Union’s Digital Markets Act, the sweeping law built to scrutinize how Big Tech operates across Europe.
The European Commission, the EU’s executive arm, found that Google gives preferential treatment to its own services, such as shopping and hotels, over third parties in search. It said Google shows those services more prominently in search results, while similar third-party services do not get the same prominence.
Regulators also ruled Google in breach of anti-steering rules covering its Play store. Under the regulation, developers distributing through Google Play should be free to tell customers about alternative, sometimes cheaper offers, and to direct them to those deals on outside websites. But the Commission said Google failed to comply with that obligation.
According to the European Commission: “Google prevents app developers from freely communicating and promoting offers” through the distribution channels of their choice, including third-party app stores.
The regulator ordered Google to treat rival services fairly and without discrimination in search. It also told the company to let Play developers promote offers and sign up customers outside its store as well as within it.
Google shares fell 4.34% in after-hours trading. The company was not immediately available for comment when contacted by CNBC.
Source: CNBC
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