New Delhi, July 23 (IANS). The European Union (EU) has imposed a total fine of 890 million euros (about $ 1 billion) on Google for violating digital competition rules. The European Commission alleges that Google gave priority to its own services on its search platform and limited competition in its app ecosystem.
The European Commission has imposed separate fines of 460 million euros for Google’s search-related activities and 430 million euros in cases related to the rules of Google Play Store. The Commission has asked the company to comply with the orders within 60 days. Failure to do so may result in an additional fine of up to 5 percent of Google’s global total revenue.
The Commission said in its statement that the investigation found that Google gives more priority to its own services like shopping, hotels, transport and sports on its search platform than third-party services. This is a violation of the rules set under the Digital Markets Act (DMA).
European Commission Executive Vice President Teresa Ribera said Google had failed to effectively comply with the Digital Markets Act. Therefore, the Commission has imposed this fine in a balanced but strict action. He said better products should succeed based on their quality, not because they are from the same company that operates the search engine.
According to the Commission, under the DMA, developers who distribute their apps through Google Play should be allowed to freely provide customers with information about alternative, and often cheaper, options and to freely direct them to purchase through the Website or other app stores.
However, the investigation found that Google was not complying with this obligation. According to the Commission, Google prevents app developers from communicating, promoting and entering into contracts with users through their choice of offers available on other platforms, including third-party app stores.
The European Commission has directed Google to immediately end this violation. Also, the company will have to ensure that third party services are treated fairly and non-discriminatory in Google search.
Additionally, developers distributing apps through the Google Play Store should be given the freedom, both technically and contractually, to communicate, promote, and contract directly with users within and outside the Google Play Store.
–IANS
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