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EU fines Google €890 million under Digital Markets Act
The fine stems from allegations that Google favored its own search services and limited developers from steering users to alternative payment options outside Google Play.
The European Commission fined Google €890 million, or about $1.0 billion, for alleged violations of the EU's Digital Markets Act. The regulator said Google unfairly favored its own services in Google Search and restricted app developers from directing users to alternative payment options outside Google Play.
The EU ordered Google to change the practices, while Google said the ruling would make its products less useful and secure and that it plans to appeal.
Forexlive notes the decision is likely to add to U.S.-EU trade tensions. U.S. Trade Representative Jamieson Greer argued the EU is disproportionately targeting successful American technology companies.
The article also points to the possibility of U.S. action under Section 301 of the Trade Act of 1974. That provision allows the USTR to investigate foreign practices deemed unreasonable or discriminatory and that burden U.S. commerce, and then recommend retaliatory tariffs if warranted.