Google Fined Rp 17 Trillion, Ordered to Open Up and Overhaul Internet Services

The European Commission has fined Google €1 billion (approximately Rp 17 trillion) for violating the Digital Markets Act (DMA). The tech giant was found to have unfairly favoured its own services over those of third parties and restricted app developers from directing users to better offers outside its platform. This is the first sanction imposed since the DMA, which regulates dominant internet companies as ‘gatekeepers’, came into force in 2024. The Commission identified two main violations. Firstly, Google displayed its own services, such as shopping, hotel bookings, and flight tickets, far more prominently in search results compared to similar third-party offerings. Secondly, the company prevented app developers from informing users about alternative, potentially cheaper offers and from directing them to third-party app stores or external websites to complete contracts. Kent Walker, President of Global Affairs for Google and Alphabet, stated that the company is reviewing the decision and considering an appeal, arguing that the required changes could harm the quality of services enjoyed by European users. In addition to the fine, the Commission has ordered Google to treat third-party services fairly and non-discriminatorily in its search results. It must also allow app developers to freely communicate with users and promote offers, including the ability to agree on contracts outside of the Google Play Store. Google has already begun testing changes to its search result displays and app store rules. The company has 60 days to fully comply with the ruling, or it faces additional periodic penalty payments of up to 5% of Alphabet’s average daily worldwide turnover.