Google hit with US$1B fine as EU says app store, search stifled competition – National
The European Union on Thursday fined Google 890 million euros ($1 billion) after it said the behemoth violated digital antitrust laws by suspending Google Play and its ubiquitous search engine from corralling users of its services and apps that hurt competitors.
It was the latest major Big Tech crackdown by Brussels, leading the world to consolidate some of the world’s biggest companies from Silicon Valley to Beijing.
It did this despite the risk of incurring the wrath of US President Donald Trump, who has attacked the digital systems of 27 countries during a broad campaign against Europe: imposing high tariffs, making threats to take Greenland from Denmark by force, and breaking trust within the NATO military alliance.
In the past, Trump has threatened to retaliate if American tech companies are punished.
Google recently lost its appeal of a $4.5 billion antitrust fine imposed by the EU for stifling competition and limiting consumer choice with its Android operating system.
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The European Commission, the bloc’s executive branch and top antitrust enforcer, said it was acting in the interests of consumers after the Google investigation.
“The best products should succeed because they are better, not because they belong to the company that runs the search engine. And European consumers have the right to be told by the developers of the application where they can sign up for the best offer, and the owner of the uncut application store,” said Teresa Ribera, Vice President of the Commission for a Clean, Fair and Competitive Transition.
Google’s President of Global Affairs Kent Walker criticized the fine as “product damage driven by a small group of self-serving plaintiffs” that will have a negative impact on European businesses and consumers.
He said the EU’s Digital Markets Act forces Google “to remove real-time search features that Europeans love – such as instant prices and direct availability of hotels, flights, and restaurants – and dismantle security protections from Google Play.”
The EU describes the world’s seven tech giants – Amazon, Apple, Google’s parent Alphabet, Meta, Microsoft and TikTok owner ByteDance – as “gatekeepers” who control consumer access.
“In the EU, businesses have the right to compete fairly. Gatekeepers have a responsibility to ensure a level playing field and consumers have the right to choose cheaper offers,” said European Commission spokesman Thomas Regnier. Alphabet reported $403 billion in revenue by 2025.
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