Technology

Google is fined US$1 billion by the European Union and tries to avoid new sanctions

Reproduction/TV Globo Alphabet's Google was fined this Thursday (23) 890 million euros (around US$1 billion, or R$5.6 billion) for violating European Union rules created to limit the power of large technology companies,...

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Google is fined US$1 billion by the European Union and tries to avoid new sanctions
G1 Tecnologia

Reproduction/TV Globo Alphabet's Google was fined this Thursday (23) 890 million euros (around US$1 billion, or R$5.6 billion) for violating European Union rules created to limit the power of large technology companies, the European Commission reported. Despite the punishment, the American giant must avoid new sanctions. European regulators praised the company's progress in adapting to the Digital Markets Act (DMA). ??Do you have any reporting suggestions? Send to g1 The fines reinforce the European Union's strategy of combating anti-competitive practices by big techs, even in the face of criticism from the US government and threats to impose retaliatory tariffs. The European Commission fined Google 460 million euros for favoring its own services in search results related to shopping, hotels, transport and sports.

A second fine, of 430 million euros, was imposed for restrictions imposed on the Google Play app store, which prevent developers from directing users to cheaper offers in competing app stores or websites for free. Reuters anticipated both penalties. They are the first applied to Google based on the DMA, but they correspond to the fifth and sixth fines received by the company in the European Union for anti-competitive practices. As a result, the total value of sanctions imposed on Google in the bloc reaches 10.38 billion euros (around R$65.3 billion) over almost two decades. "Our duty and obligation is to comply with the laws and ensure that they are fully respected," said the head of the European Union's antitrust area, Teresa Ribera, when asked about the US reaction. "The aim of the DMA is to ensure a fair and level playing field. With these decisions, we want to ensure that there is competition," said European Commissioner for Technology, Henna Virkkunen. Google has 60 days to comply with the European Commission's determinations, which require fair and non-discriminatory treatment of competitors and allow developers to direct users to offers outside of Google Play. The company criticized the European Union's conclusions and stated that it could take legal action. "To meet these demands, we are having to remove real-time search features that Europeans appreciate, such as instant pricing and direct availability of hotels, flights and restaurants, as well as dismantle security protections in Google Play," Kent Walker, president of Global Affairs at Google, said in a statement. "This is not fair competition; it is a degradation of the product driven by a small group of complainants who seek only their own benefits, while European companies and consumers suffer the consequences. Regulation should improve products, not make them worse," he added. Dialogue with regulators The European Commission indicated that further fines are unlikely and highlighted the "constructive dialogue" held with Google, in addition to the company's significant progress in complying with the DMA. According to the agency, Google proposed and began testing changes in the way it displays its own services in Search for categories such as shopping, hotels and flights. The Commission classified these changes as a substantial advance. The company also began testing to modify the presentation of ads related to shopping and content, such as sports. The Commission informed that it will continue to evaluate these changes and maintain negotiations with the company. European regulators added that Google will be able to apply the principles of this Thursday's decision also to its summaries generated by artificial intelligence, known as AI Overviews and AI Mode. Discussions about these tools should continue. Changes to Google Play's targeting rules have received preliminary approval from the Commission. "These advances represent good progress towards compliance with standards and will also be evaluated in light of the order issued in today's decision," the agency said. The European Union's actions against large technology companies have caused friction with the government of US President Donald Trump, who threatened to retaliate with tariffs because he considers that the measures affect American companies. American parliamentarians also increased pressure on the bloc. This Thursday's sanctions are the third application of fines based on the DMA, following the penalties imposed on Apple and Meta in April last year.

Source: G1 Tecnologia

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