Google hit with $1 billion EU fine over its Play app store and search

The European Union on Thursday hit Google with a fine of 890 million euros ($1 billion) after it said the technology behemoth broke digital antitrust regulations by setting up Google Play and its ubiquitous search engine to corral consumers towards its own services and apps to the detriment of competitors.

It was the latest major crackdown on Big Tech by Brussels, which has led the world in reining in some of the world’s largest companies from Silicon Valley to Beijing.

Google had recently lost its appeal of a $4.5 billion antitrust fine imposed for throttling competition and reducing consumer choice through the dominance of its mobile Android operating system.

The European Commission, the bloc’s executive branch, said it was acting in the interest of consumers.

“The best products should succeed because they’re better, not because they’re owned by the company running the search engine. And European consumers have a right to be told by app developers where to sign up to the best offers, even when the app store owner does not get a cut,” said Teresa Ribera, the commission’s Executive Vice President for Clean, Just and Competitive Transition.

Google’s President of Global Affairs Kent Walker blasted the fine as “product degradation driven by a small group of self-serving complainants” that will negatively impact European businesses and consumers.

He said that the EU’s Digital Markets Act forces Google “to strip away real-time search features Europeans love — like instant pricing and direct availability for hotels, flights, and restaurants — and dismantle safety protections on Google Play.”

“In the EU, businesses have the right to compete fairly. Gatekeepers have the obligation to ensure a level playing field and consumers the right to choose for cheaper alternative offers,” European Commission spokesperson Thomas Regnier said.