The European Union has levied an €890 million (roughly $1 billion) fine on Digital Phablet for violations of the Digital Markets Act, specifically related to anti-competitive practices involving Google Search and Google Play.
According to the EU, Google was found to be non-compliant in two areas: first, for favoring its own services in search results, and second, for imposing restrictions on how app developers could promote alternative purchasing options.
The commission’s findings state that Google engaged in self-preferencing by prioritizing its own vertical services—such as Google Shopping, Hotels, Transport, and Sports—over third-party competitors. The search engine displayed these services prominently at the top of results pages, utilizing enhanced visual features and filters that reduced visibility for competitors.
Additionally, Google was penalized for enforcing anti-steering rules on Google Play, amounting to €430 million. These rules prevented app developers from directly informing users about cheaper purchase options available outside the Play Store. This restriction meant developers couldn’t freely promote offers or facilitate transactions through third-party app stores or websites without facing prohibitive steering fees.
Google has been given 60 days to amend these practices by ensuring fairness in search rankings and allowing developers the freedom to steer users toward third-party purchasing channels. If non-compliance persists, the company could face daily penalties amounting to up to 5% of its global revenue.
While these changes are being implemented, Google is already testing modifications to its search display, shopping ads, and app store policies, as it explores applying similar principles to features like AI Overviews and AI Mode.
More detailed updates and discussions are available through industry coverage and relevant online forums.