Unfair Favoring of Google Search and App Store Services

Alleged Violation of Digital Markets Act

USTR Chief: "Creates Massive Uncertainty"

The European Union (EU) has imposed a fine of approximately 1.5 trillion won on Google, a major U.S. Big Tech company, raising concerns that tensions with the United States may deepen further.


Google Logo. Reuters Yonhap News

Google Logo. Reuters Yonhap News

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The European Commission announced on the 23rd (local time) that it had fined Google 890 million euros (about 1.48 trillion won) for violating the Digital Markets Act (DMA) by unfairly favoring its own services in the search and app store markets. The EU also ruled it was illegal that Google prevented application (app) developers from directing consumers to cheaper offerings on their websites or in other app stores.


The fine consists of 460 million euros for the search segment and 430 million euros for the app store segment. The EU ordered Google to treat third-party services appearing in search results in a fair and non-discriminatory manner, and to allow app developers to sell products outside of Google Play as well.


However, the EU positively assessed Google's recent pilot changes in how its services are displayed, calling it "considerable progress toward compliance with the law." A high-ranking EU official told The Guardian that "search results in Europe will change," and said consumers will be the direct beneficiaries of this decision.


This decision comes just ahead of the expiration of the U.S. provisional global tariff (10%) on July 24. However, the EU side drew a clear line, saying the matter is unrelated to tariffs and emphasizing its "sovereign right to regulate U.S. technology companies within its own jurisdiction."


The U.S. government responded immediately. Jamieson Greer, the U.S. Trade Representative (USTR), issued a statement criticizing the EU for increasingly adopting an aggressive approach targeting U.S. tech companies, adding, "The various fines imposed on Google alone now exceed 2% of the EU's budget, a contribution surpassing that of many EU member states." He continued, "Such measures create massive uncertainty for U.S. products and services exported to Europe," claiming the EU is undermining the possibility of resolving issues through dialogue and the trade stability of the transatlantic alliance.


Google may appeal this decision and request a suspension of enforcement. Kent Walker, President of Global Affairs at Google, protested, saying, "This is a measure that diminishes product features at the request of a small group of stakeholders," and added, "It will end up hurting European businesses and consumers instead."



Meanwhile, civil society groups criticized the EU's action as insufficient. Max von Thun, director of the European office of the think tank Open Markets Institute, said, "For a company whose sales topped 400 billion dollars last year, this fine is the bare minimum," stressing, "The EU must act quickly to put an end to Google's anti-competitive practices."


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