While in the Apple world it often seems as if the EU is primarily taking action against Apple’s business practices, Cupertino is certainly not the only target. Google is now facing a huge fine for anti-competitive behavior. The penalty amounts to 890 million euros, of which 460 million euros are attributable to Google Search and 430 million euros to Google Play. Overall, this is the fifth and sixth EU penalty against Google for violations of competition law, bringing the EU fines against the company over almost two decades to 10.4 billion euros. The largest single fine was 4.34 billion euros in 2018, when the focus was on manufacturer specifications for the use of Android. Search: Self-preference in products
In Search, the accusation is that Google favored its own services in search results – specifically mentioned are shopping, hotels, transport and sports. Google controls the search engine market and, according to the Commission, is illegally exploiting this position to place its own offers better than competing services. However, it is precisely such practices that the Digital Markets Act is intended to prevent as soon as a company is classified as a “gatekeeper”.
Play Store: Restrictions against external offers
In the case of Google Play, it’s about the so-called “Anti Steering” rules. App developers should be able to point out or direct users to cheaper offers outside of the Play Store – for example to their own website or to alternative app stores. Google and Apple largely share the same accusations here, as both of course have little interest in reducing the billion-dollar business of store commissions. However, if such services remain central contact points not because of better performance, but simply because of platform power and restrictive rules, this also represents a violation of the DMA.
Implementation must be quick
Google now has 60 days to comply. Competitors must be treated fairly and non-discriminatorily in search, and developers should be able to guide Google Play users to alternative offers. At the same time, the Commission is signaling that further penalties are unlikely for the time being, as Google is already testing changes in the ongoing dialogue. These include adjustments to the presentation of own services in Search as well as changes to shopping ads and sports-related content – the Commission also explicitly recognizes progress in the Play Store rules.
Google’s first reaction
As expected, Google strongly rejects the decision. The measures are therefore not seen as an improvement in fair competition, but as product deteriorations forced by complainants. In order to meet the requirements, Google would have to remove real-time functions, such as direct price and availability information for hotels, flights and restaurants – and dismantle protection mechanisms on Google Play, which once again brings the inevitable argument of user security to bear.
