The European Union has fined Google €890 million for favoring its own apps over competitors', in a major enforcement action under the Digital Markets Act. The penalty targets the company's practice of giving its own services preferential treatment on its platforms, a violation of the new competition rules. The fine is one of the largest imposed under the regulation, which took effect in 2023.
The €890 million penalty
The European Commission found that Google, owned by Alphabet, breached the Digital Markets Act by promoting its own apps ahead of rivals. The DMA designates large online platforms as gatekeepers and requires them to treat third-party products fairly. The fine is based on a percentage of Google's global annual revenue, as allowed under the law. The exact calculation has not been disclosed.
Alphabet's market cap odds
Separately, a prediction market has given Alphabet a 2% chance of being the second-largest company by market cap on July 31. The odds, listed as 2% YES, reflect a low probability that the company will hold that position. Prediction markets allow users to bet on future events, with odds expressed as percentages. The low odds come amid the regulatory fine and other pressures on the tech giant.
The fine adds to the regulatory scrutiny Google faces in Europe. The DMA gives regulators new tools to enforce fair competition, and this penalty signals the EU's willingness to use them. The prediction market's 2% odds leave open the question of whether Alphabet can maintain its ranking among the world's most valuable companies.
