Google Fined Rp 17 Trillion, Ordered to Open Up and Overhaul Internet Services
Google has been fined US$1 billion (around Rp 17 trillion) by the European Commission. The penalty was imposed after Google was found to have violated the European Union’s anti-monopoly rules.
The European Commission ruled that Google had given preferential treatment to its own services over third-party providers. This is the first sanction the technology giant has received since the Digital Markets Act (DMA) came into force.
The DMA is an EU regulation designed to oversee the business practices of large technology companies and foster healthier competition in the digital market.
Two Main Violations
According to the European Commission’s findings, Google breached the DMA in two principal ways:
Search results: Google displayed its own services, such as shopping, hotel bookings, and travel tickets, in far more prominent positions than similar third-party services.
Anti-steering rules: The company prevented app developers distributing products through Google Play from informing users about potentially cheaper offers elsewhere, and from directing them to alternative app stores or external websites.
“Specifically, Google prevented app developers from communicating freely, promoting offers, and entering into contracts with users through any channel of their choosing, including third-party app stores,” the European Commission said in a statement.
Kent Walker, President of Global Affairs at Google and Alphabet, argued that the enforcement of these rules would instead damage the quality of services enjoyed by Europeans.
“We are being forced to remove search features that Europeans value, such as live prices and availability for flights, hotels, and restaurants, and to weaken security protections on Google Play,” Walker said.
Google said it is studying the decision and considering an appeal.
In addition to the fine, the European Commission has ordered Google to treat third-party services fairly and without discrimination in search results, to allow app developers to promote offers, and to enter into contracts with users both inside and outside the Google Play Store.
The Commission noted that Google has already submitted and begun testing changes to its search results display, and has started revising the rules in its app store. The company has been given 60 days to fully comply. If it fails to do so, additional fines could reach 5% of Alphabet’s total global revenue each year.
Market Reaction
The DMA, which came into force in 2024, designated Alphabet, Apple, Meta, and several other dominant internet companies as digital market “gatekeepers”, subjecting them to additional obligations to maintain fair competition.