The European Commission has levied a fine of €890 million, approximately $1 billion USD, against Google for two distinct violations of the EU's Digital Markets Act (DMA). Google faces a deadline of 60 days to rectify these issues or risk additional penalties equivalent to up to 5% of its worldwide turnover.
The commission's findings indicate that Google engaged in "self-preferencing its own services on Google Search," and implemented "restrictions on businesses to direct consumers to alternative, often cheaper, purchase channels on Google Play (steering)." These infractions have resulted in separate fines of €460 million and €430 million, respectively.
In response, Google has initiated changes to its search presentation for free services such as shopping, hotels, and flights, and plans to review how shopping ads and related content, like sports information, are displayed. Adjustments are also anticipated for AI Overviews and AI Mode.
The Digital Markets Act, enacted to foster fairer and more competitive digital markets, identifies online "Gatekeepers" who operate "core platform services." Google, recognized as such a gatekeeper, is subject to specific regulations. Previously, the DMA prompted proposals for Google to share search data, including ranking, query, click, and view data, with third-party search engines.
Google has previously expressed criticism regarding the DMA compliance measures, with a spokesperson stating in May that the necessary changes represented a "downgrade in the product's history, creating a second-rate experience for Europeans to the benefit of a few self-interested complainants." The company retains the option to appeal the European Commission's latest decision. This latest penalty adds to the substantial antitrust fines Google has incurred across the EU in the past, including a €4.1 billion fine related to the pre-loading of Google products on mobile devices.