
Brussels said Google favored its own services in search and restricted app developers from steering users to outside offers, while ordering changes within 60 days and reviewing proposed updates tied to search and AI features.
The European Commission has fined Google 890 million euros, or about $1.02 billion, in the company’s first penalty under the European Union’s Digital Markets Act, saying the company favored its own services in search results and restricted app developers from directing users to alternative offers outside Google Play. The total penalty is split into a 460 million euro fine over self-preferencing in search and a 430 million euro fine over anti-steering practices on the Play Store. EU officials said Google gave its own shopping, hotel, transport and sports services more prominent placement in search results, including top-page positioning, enhanced visuals and filters that comparable third-party services did not receive. The Commission also said Google prevented app developers from freely informing users about cheaper offers or directing them to purchases through websites and third-party app stores, and found that the company’s steering-related fees and the period during which they were charged exceeded what the DMA allows. Google has 60 days to comply or face periodic penalties of as much as 5% of its total worldwide turnover. European Commission Executive Vice President Teresa Ribera said better products should win on merit rather than ownership of the search engine. The Commission said Google has started testing changes to search results and steering rules, and it is also reviewing the company’s proposals on AI Overviews and AI Mode.