Google slapped with $1 billion fine under landmark EU digital law
The European Commission has fined Google $1 billion for violating the Digital Markets Act by favoring its own services in search results and restricting app developers. Google has criticized the ruling, claiming it harms product functionality and user experience.
Why it matters
This is the first major enforcement action under the EU's Digital Markets Act, setting a significant precedent for how Big Tech companies operate in Europe.
European regulators have fined Google 890 million euros (US$1 billion), alleging the company gives preferential treatment to its own services.
The fine is Google's first under the European Union's sweeping Digital Markets Act which aims to scrutinize Big Tech's operating practices in Europe.
Shares of Google parent Alphabet were around 4% lower in premarket trading, but that primarily reflected investor unease over rising AI spending outlined in the company's earnings report on Wednesday.
The European Commission, the EU's executive arm, said it found that Google gives preferential treatment to its own services, such as in shopping and hotels, over those of third parties in search.
Google displays its own services "more prominently in search results," while similar third parties "do not have the same prominence," the Commission said.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in