Google faces $1B EU fine, holds talks to avoid more penalties

Google has been under the severe EU scrutiny and the tech giant has paid a total of €890 million ($1 billion) fine in recent months.

According to the European Commission, Google flouted the EU rule, aiming at curbing the power of Big Tech in the competitive landscape.

But, the company is seeking to avoid further fresh fines by engaging in talks with the EU regulators.

According to the regulators, the company is making significant efforts to comply with the Digital Markets Act (DMA). The efforts include testing changes aimed at presenting its free services on Google Search.

"The Commission also notes that Google has proposed and started testing changes ​to how it presents shopping ads and content related services, such as sports," the statement reads, adding it would assess ​the changes and continue ⁠talks with Google.

Of €890 million fine, the amount of €460 million was handed out to Google under the DSA when the tech company was accused of favoring its own services while throttling competitive space for other rivals.

As per Commission findings, Google was responsible for using restrictive contractual clauses in its AdSense platform between 2006 and 2016 to prevent competitors from placing search ads on publisher websites in a bid to overshadow their market dominance.

The company was hit with another fine of €460 as it was found guilty of placing restrictions on Google Play store aimed at preventing app developers from informing users about cheaper deals on external websites or rival app stores.

“Our duty and obligation is to comply with ​the laws, that our laws are fully respected," EU antitrust chief Teresa Ribera told reporters.

"The DMA is to make sure we have a fair and level playing field. With these decisions we want to make sure there is competition," EU tech chief Henna Virkkunen said.

However, Google did not consider penalties fair to impose and criticized the EU decision.

According to Google President of Global Affairs Kent Walker, “This isn't fair competition; it's product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit. Regulation should improve products, not make them worse.”