There was a stir in the tech world: Google imposed a fine of Rs 7600 crore, know the whole matter

Technology Desk – The European Union (EU) has taken another major action under the Digital Markets Act (DMA) and imposed a fine of about 89 crore euros (about Rs 7,600 crore) on the tech company Google. The Commission says that Google did not follow the rules related to its search engine and Play Store and along with giving unfair advantage to its services, also imposed such restrictions on app developers, which affected competition. This action has taken place at a time when the pressure on big tech companies to maintain fair competition in the market is increasing continuously.

For what reasons was the fine imposed?

According to the European Commission, the case concerns two separate violations. In the first case, the allegation is that Google gave more prominence to its services, such as shopping, hotel booking and flight related options, compared to competing platforms in its search results. The Commission believes that this did not provide a level playing field to other companies.

The second case is related to Google Play Store. The investigation found that app developers faced a number of limitations in informing their customers about cheaper subscriptions and offers available on external websites or alternative app stores. The EU says that such restrictions are against the principle of fair competition in the digital market.

What is the Digital Markets Act?

The Digital Markets Act is an EU law that has been implemented to balance the influence of large digital companies and ensure fair competition in the market. Under this law, big tech companies have to treat all services and businesses on their platforms equally. Heavy financial penalties can be imposed for violating the rules.

Dispute may increase between America and Europe

After this decision, the discussion of increasing trade tension between America and the European Union has also intensified. The American side believes that Europe is continuously taking strict action against American tech companies. At the same time, the European Commission has clarified that this step has been taken only to ensure compliance with the law and is not related to any trade or tariff dispute.

Google expressed objection to the decision

Google has expressed disagreement with the European Union’s decision. The company says that it will challenge this order in the court and will also demand interim relief on the fine. Google claims that the changes made to its platform are aimed at providing a better experience to users and the Commission’s decision may impact innovation and quality of services.

Action has already been taken in Europe

For the last several years, the European Union has been adopting a strict stance on big tech companies regarding compliance with competition rules. Even before this, a fine of billions of euros has been imposed on Google in matters related to search, advertising and Android. The latest action indicates that monitoring and strictness under the Digital Markets Act may continue.