Google fined by EU despite threats of new tariffs

Written by journalist Danylo Aleksandrov

Despite US preparing new tariffs for EU as the established ones will be over soon, Brussels fined Google for €890 million for allegedly unfair treatment of app developers and promoting itself via its services during search.

On Thursday the European Commission announced that Google will receive a fine of €890 million. The decision is in line with EU’s Big Tech rulebook, which sets out what tech corporations that have a strong hold over critical digital markets can and cannot do.

The main offense in Commission’s view comes from Google’s search engine allegedly favoring its own services in most cases, which is not accidental. This means that when, for example, searching for a hotel, the search engine would suggest the user to look at Google Hotels service, rather than other similar search results, which come from competitors. The fine for this amounts to €460 million.

The remaining sum of the fine comes from accusations by app developers. According to them, Google does not tell its users how they can leave it’s ecosystem. It does not inform users of other options, such as alternative marketplaces or payment systems which can be used.

Aside from the fine, European Commission also asked the corporation for compliance, meaning that Google will have to stop discrimination against third party sources and allow developers more freedom for direct communication with users. The company has 60 days to comply, otherwise up to 5% of its worldwide turnover will have to be paid on a periodic basis.

This event might become a new highlight in tensions between EU and US. As the previously imposed tariffs will expire this week, Washington prepares a set of new ones, while negotiations with Brussels are underway.