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Google's parent company, Alphabet, has been fined €890 million, or about Rs. 9,796 crore, by the European Union for breaking the Digital Markets Act. The European Commission announced the decision on Thursday after finding that Google gave its own services an unfair advantage in Search and restricted app developers through Play Store policies. The ruling came after a two-year investigation and several chances for Google to fix the issues.
The fine includes €460 million for Google Search and €430 million for Play Store practices. The Commission said Google showed its own Shopping, Hotels, Flights, and other services more prominently than rival platforms.
Regulators also found that Google stopped Android developers from directing users to cheaper payment options outside the Play Store.
The European Commission has ordered Google to treat competing services fairly in Search results and allow developers to freely promote alternative payment methods. Officials said the company must end these practices and fully follow the Digital Markets Act.
Google introduced several changes during discussions with regulators, including updates to Search results and Play Store rules.
The Commission accepted that some progress had been made, although it concluded the changes did not fully meet the law's requirements.
Google said it disagrees with the decision and plans to appeal. The company argued that the Digital Markets Act makes its products less useful and could make Android users more vulnerable to scams and harmful links.
The latest penalty marks Google's first major fine under the Digital Markets Act. The decision also signals that the European Union will continue taking strict action against large technology companies that fail to follow its digital competition rules.
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