The logos of the European Union and Google. [AFP]
The logos of the European Union and Google. [AFP]

The European Union announced Thursday that it would impose an additional fine of 890 million euros ($1.02 billion) on US tech giant Google for violating the EU's Digital Markets Act, the bloc's key competition law designed to curb the market dominance of large online platforms.

The EU determined that Google had used its effectively monopolistic search engine and app store, Google Play, to steer consumers toward its own services and applications, disadvantaging rivals. The EU set a fine of 460 million euros for Google's preferential treatment of its own services in search results, and 430 million euros for restricting consumers' access to cheaper alternatives through Google Play.

Under the DMA, companies designated as "gatekeepers" — dominant market players — are prohibited from ranking their own services more favorably than those of competitors. The EU found that Google violated the DMA by placing its own services at the top of search results for shopping, transportation and tourism, or by displaying them with more prominent visual elements.

In addition, the EU ruled that app developers distributing through Google Play must be able to direct consumers to alternative purchasing channels free of charge, and must keep open pathways for consumers to buy through websites or other app stores — obligations Google failed to meet.

Google must implement corrective measures within 60 days of the ruling. If it fails to do so, the EU may periodically impose penalty payments of up to 5 percent of Google's total worldwide annual revenue.

This is not the first time Google has faced a large fine from the EU.

In 2018, the EU fined Google a then-record 4.34 billion euros for abusing its dominant position in connection with the Android operating system. Google challenged the decision and fought the EU in court for eight years, but recently lost before the European Court of Justice, the bloc's highest court, making the fine final.

As the EU tightens regulation on the world's largest technology companies — from Chinese giants such as Huawei to American big tech firms — it is drawing pushback from both the United States and China.

The Trump administration has expressed displeasure with the EU's big tech regulations, and analysts warn the issue could escalate into a new trade dispute between the two sides. China, too, has pushed back sharply after the EU moved to exclude major Chinese technology companies' products from public procurement and other projects on security grounds, heightening tensions between the two sides.


yckim6452@heraldcorp.com