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Brussels Presses Google Over Compliance With €890 Million Digital Markets Act Penalties
The European Commission is assessing changes to Google’s search engine and app-store practices after imposing two substantial fines in July. Regulators must now decide whether the company’s response satisfies EU competition requirements or leaves it exposed to further enforcement.
The European Commission is continuing discussions with Google over the company’s response to €890 million in penalties imposed under the Digital Markets Act, as Brussels examines whether changes to its search engine and app-store practices are sufficient to address infringements of European competition rules.
Commission spokesman Thomas Regnier confirmed on Wednesday, 14 October, that officials remained in dialogue with the American technology company. The Commission is assessing the measures Google has introduced, taking account of feedback from businesses affected by its services before reaching a conclusion on compliance.
The review follows two decisions adopted on 23 July, when the European Commission found Google in breach of the Digital Markets Act. A €460 million fine concerned preferential treatment for Google’s own services in search results, while a separate €430 million penalty addressed restrictions preventing app developers from freely directing customers towards alternative purchasing channels.
Search rankings remain under examination
The first infringement concerns Google’s treatment of competing online services offering hotel reservations, shopping comparisons, transport information and sports results.
Regulators concluded that Google had placed its own services in more prominent positions, sometimes providing them with enhanced visual features and search functions unavailable to competing businesses.
The Digital Markets Act prohibits designated gatekeepers from giving their own products preferential treatment when ranking services that compete with those offered by other companies.
Google has already modified its European search results in response to the Commission’s decision. The changes include revised presentations of commercial information and greater prominence for independent comparison services.
As EU Today reported following the introduction of the revised search format, Google has argued that the measures could make searches less convenient and increase dependence on intermediary websites.
The company maintains that direct information previously available through its search engine may become harder for consumers to obtain.
For competitors, however, the question is whether Google’s adjustments provide genuine commercial opportunities or merely alter the appearance of search results without changing the underlying distribution of traffic.
Google Play fees face scrutiny
The second case concerns the Google Play application marketplace, where developers have historically depended on Google’s infrastructure to distribute software and sell subscriptions.
Under the DMA, developers must be able to inform customers about alternative offers and direct them towards purchasing arrangements outside the platform, including their own websites.
The Commission found that Google’s restrictions and fees had limited that freedom.
Although the company may charge for certain services associated with acquiring customers, the Commission concluded that the level and duration of its steering-related charges exceeded what the legislation permits.
Google has since adjusted its external-offers arrangements. European officials are examining whether those changes provide developers with a commercially workable alternative to transactions processed through Google Play.
The issue has consequences for subscription services, digital publishers and software companies seeking to maintain direct relationships with their customers.
A formal ability to direct consumers elsewhere is of limited benefit if the financial conditions make such transactions uneconomic.
Enforcement enters a more demanding phase
The Digital Markets Act was designed to address market practices that conventional competition investigations often took years to resolve.
Rather than requiring regulators to establish a new infringement through lengthy proceedings in every instance, the legislation imposes specific obligations on companies designated as gatekeepers.
The Commission’s DMA enforcement framework allows regulators to examine whether those obligations are being followed and to impose financial penalties when they are breached.
Google’s July fines represented an important enforcement decision. The current review concerns the company’s subsequent conduct and the practical effects of its compliance measures.
The continuation of discussions does not itself establish a fresh infringement. Further penalties would require an additional regulatory determination.
Google also faces broader obligations concerning the sharing of search data with competing providers, an issue addressed in a separate Commission decision issued in July.
These obligations concern access to anonymised information about searches, rankings and user interactions that competing search engines may need to improve their own services.
Taken together, the measures represent a substantial intervention in how Google’s European business operates.
Transatlantic tensions complicate the dispute
The proceedings have acquired a political dimension because most of the largest companies affected by the DMA are American.
President Donald Trump has criticised European penalties against US technology companies and threatened trade measures in response to what his administration regards as discriminatory regulation.
Brussels maintains that the legislation applies according to market position and commercial conduct, regardless of nationality.
European regulators must nevertheless enforce their decisions in an environment where competition policy has become entangled with wider trade relations between the United States and the European Union.
Google’s financial exposure extends beyond the €890 million imposed in July. Continued non-compliance could lead to further regulatory proceedings, while changes to the company’s services may also affect advertising revenue and its relationships with commercial partners.
The immediate assessment will concentrate on whether competing search services receive fair treatment and whether application developers can direct customers towards alternative transactions without unjustified restrictions.
The Commission has not announced a date for its final assessment. Its decision will help establish how far Europe’s digital competition legislation can change the conduct of companies whose platforms occupy central positions in online commerce.
