Key facts
- The European Commission fined Google €890 million for competition law breaches.
- The fine was issued under the Digital Markets Act (DMA) for alleged self-preferencing of Google's own services.
- The US government criticized the fine, stating it unfairly targets American companies and risks the EU-US trade deal.
- US officials warned the EU's digital rules pose risks to user privacy and security and create uncertainty for trade.
- Google stated compliance with the DMA requires removing popular features and dismantling safety protections.
The European Commission has fined Google €890 million for violating competition laws, marking the first penalty under the bloc's Digital Markets Act (DMA). The investigation concluded that Google engaged in unfair practices, notably self-preferencing its own services in search results and app store rules over rivals.
The decision immediately drew criticism from the US government, with US Trade Representative Jamieson Greer stating that the EU's digital rules unfairly target American companies and that such fines are akin to trade tariffs. Greer warned that these actions create significant uncertainty for U.S. exports to Europe and pose risks to user privacy and security.
Greer further asserted that the cumulative fines against Google alone represent over 2% of the EU's budget, a contribution larger than many member states. He indicated that the EU's enforcement of the DMA contradicts commitments made to Washington on digital trade barriers and dismissed ongoing dialogues as delay tactics.
In response to the fine, Google stated that compliance with the DMA necessitates removing popular real-time features from its services, such as instant pricing for hotels and flights, and dismantling safety protections on Google Play. The company has a 60-day deadline to comply or face periodic penalty payments of up to 5% of its worldwide turnover.
Despite the US backlash, EU officials maintain their sovereign right to legislate and enforce rules based on solid evidence, emphasizing that the DMA is non-discriminatory and aims to ensure market fairness. Critics, however, have pointed out that the €890 million fine is modest relative to Google's turnover, suggesting the EU may be tempering its enforcement to avoid escalating trade tensions.
This development occurs amidst ongoing efforts to revive transatlantic tech cooperation through a digital dialogue, which critics view as a platform for Washington to lobby against EU digital rules. The EU has also recently fined AliExpress €550 million, attempting to demonstrate that its regulations do not exclusively target US tech giants.