EU hits Google with $1B+ fine over travel search practices, citing unfair advantage

The European Commission has fined Google €890 million (CAD$1.2 billion) after determining the tech giant abused its market position by giving preferential treatment to its own services in search results, including tools that help consumers book flights and hotels.

The penalties mark the European Union's first major enforcement action against Google under the Digital Markets Act (DMA), landmark legislation designed to rein in the power of the world's largest technology companies.

According to the Commission, Google's practices restricted consumer choice by favouring its own products and services over competing platforms.

Promoting its own

As part of the decision, regulators imposed a €460 million fine after concluding that Google promoted its own flight and hotel booking services ahead of rivals in search results.

The Commission also levied an additional €430 million penalty related to Google's Play Store policies, saying the company prevented consumers from easily accessing cheaper offers available outside its app marketplace.

The latest ruling adds to Google's long-running legal battles with European regulators. Over the years, the company has faced billions of euros in fines stemming from separate competition investigations.

Google has 60 days to comply with the Commission's decision or challenge it in court.

Google pushes back

The company pushed back against the ruling, arguing the EU's requirements could negatively affect services relied on by millions of users across Europe.

"To comply, we are having to strip away real-time Search features Europeans love - like instant pricing and direct availability for hotels, flights and restaurants - and dismantle safety protections on Google Play," said Google's president of global affairs Kent Walker, as reported by the BBC. "This isn't fair competition."

European Union officials dismissed that criticism, maintaining the measures are necessary to ensure dominant digital platforms do not unfairly disadvantage competing services.

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