Skip to main content

Google hit with another fine by the EU, this time for $1.7 billion

Stadia Official Reveal: The Future of Gaming from Google

Google has been fined by the European Union again, this time for imposing what the EU calls “unfair terms” relating to its online advertising market. This ruling has resulted in a fine of 1.5 billion euros (around $1.7 billion), the third such fine handed to Google by the EU’s European Commission.

The root of the complaint against the search engine giant involved the terms for third-party websites who wanted to use Google’s search bar in their own websites. According to the E.U.’s ruling, Google required websites to favor ads from its own advertising services above the ads of competitors. This is against the EU’s antitrust rules, as laid out in a statement by Margrethe Vestager, head of Europe’s top antitrust watchdog.

“Google has cemented its dominance in online search adverts and shielded itself from competitive pressure by imposing anti-competitive contractual restrictions on third-party websites. This is illegal under EU antitrust rules.”

Image used with permission by copyright holder

Google has responded to the fine by stating it ceased this practice in 2016, but it is still looking at making further changes to its services to conform better to European laws. Interesting, a Google blog post on making more updates for the European markets was posted the day before the fine was announced, publicly signaling Google’s attempts to comply with the E.U.’s demands.

It’s also interesting to note Google has not yet stated whether it is planning to appeal the fine. Google is currently appealing two earlier fines levied against it by the European Commission — one $2.73 billion fine for prioritizing its own shopping service in searches, and a record-breaking $5.1 billion fine for antitrust issues surrounding the mobile operating system Android.

This latest fine comes at a time of increasing pressure for some of the world’s largest companies. Democratic Senator Elizabeth Warren has announced her intention to run for the U.S. presidency in 2020 on a campaign that includes breaking up Facebook, Amazon, and Google, reflecting a significant change in how these enormous companies are seen by the world at large.

Will this penalty have an effect on Google itself? Financially, the loss of a further $1.7 billion will certainly sting, but it’s unlikely to cause any major issues for Google’s parent company, Alphabet, which reported revenue of $137 billion last year.

Mark Jansen
Mark Jansen is an avid follower of everything that beeps, bloops, or makes pretty lights. He has a degree in Ancient &…
Google is paying a historic $85 million fine after illegally tracking Android phones
Google Logo

Google will be paying Arizona $85 million in a settlement over a 2020 lawsuit that claimed the company was illegally tracking Android users for targeted advertising.

According to a report from Bloomberg, Attorney General Mark Brnovich filed a lawsuit in May 2020 claiming that Google violated the state's Consumer Fraud Act by gathering location data from Android users, even after people turned off their location settings. At the time, Google's own employees were confused about its privacy controls, admitting that it could use some fine-tuning so that when users deny the company permission to track their data, it has to respect their decision.

Read more
Google slapped with record-setting antitrust fine in the EU
Google Search on mobile

Google has been handed a blistering setback totaling over $4 billion in Europe. The company was slapped with a record fine by the European Union in 2018, following a 2015 investigation alleging that the company abused its market position as the dominant smartphone operating system (via Android) and engaged in anticompetitive practices.

Google appealed the fine, but the European Court of Justice has rejected it and has largely upheld the original penalty. The commission originally imposed a fine worth 4.343 billion Euros, but following Google’s unsuccessful appeal for annulment, the General Court has only slightly reduced the penalty to 4.125 billion Euros and maintains that the search giant violated antitrust laws.

Read more
Google Play Store now offers third-party app payments, but only for some users
The Google Play store icon on an Android phone.

Google will now open up its Play Store as a result of the European Union's Digital Markets Act, the company announced today. Now, any developers distributing apps or games in Europe (the European Economic Area, to be precise) will be able to sidestep the Google Play billing system with no penalty. The change comes after a similar push in South Korea.

"As of today, Google will not remove or reject updates of non-gaming apps from participating developers for offering alternative billing systems for EEA users. Google Play’s billing system will continue to be required for apps and games distributed via Play to users outside the EEA and for games distributed to users within the EEA. We expect to expand billing alternatives to developers of gaming apps for their users in the EEA, in advance of the DMA's effective date," Google's Estelle Werth, director of EU Government Affairs and Public Policy, said in a blog post.

Read more