European Commission fines Google €890 million

The European Commission today adopted two decisions against Google, finding that the company is in breach of the Digital Markets Regulation by favouring its services on Google Search. The company has also imposed restrictions that prevent consumers from being directed to alternative, often cheaper, shopping channels on Google Play. As a result, the Commission fined Google €460 million and €430 million respectively.

Preferring its products and services on Google Search

According to the Digital Markets Regulation, access managers cannot display their services in a more favourable way than others in search results. They must apply transparent, fair and non-discriminatory conditions to such ranking.

The Commission found that Google displays its services, including shopping, hotels, transport and sport, in a more favourable way than those of others, thus breaching its obligations under the Digital Markets Regulation. Google displays its services more prominently, either above search results or through additional visuals and filters, while similar services offered by third parties do not have the same visibility.

Referral restrictions

Under the Digital Markets Regulation, app developers distributing their apps on Google Play should be able to inform and direct customers to alternative, often cheaper, offers, for example on websites or in alternative app stores. The Commission found that Google has failed to comply with this obligation.

In particular, Google prevents app developers from freely communicating and promoting offers and concluding contracts with users in the distribution channels of their choice, including in the app stores of other companies. While Google may charge a fee for making it easier for app developers to find new customers through Google Play, the referral fees and the period for which they are charged went beyond what is compatible with the Digital Markets Regulation.

As part of today's decisions, the Commission has ordered Google to cease the infringement. Google must take measures to ensure that:

third-party services are displayed in search results in a fair and non-discriminatory manner compared to Google's own services;

app developers distributing their apps through the Google Play Store are free, both technically and contractually, to communicate and advertise offers and to conclude agreements with users not only on the Google Play app store but also outside of it.

The Commission notes that, following a constructive dialogue, Google has proposed changes and started testing them. The Commission is currently assessing these changes and will continue its dialogue with Google.

Google is required to comply with the Commission's decisions within 60 days, failing which it may be subject to periodic penalty payments of up to 5% of its global turnover. The Commission will continue to work with Google to ensure compliance with its decisions and with the Digital Markets Regulation more generally.

In September 2023, Google was appointed as the access controller for its online search engine, Google Search. The investigation into Google that led to today's decisions was opened on 25 March 2024. In calculating the fines, the Commission has assessed the gravity, duration and repetition of the infringements and has concluded that the level of the fines imposed is proportionate and appropriate. Google may appeal today's decisions.