TECH

Google at risk of heavy fine: EU demands Play Store follow Apple's example

The world of technology regulation in Europe is full of twists and turns. After years of being the main target of the European Commission's antitrust investigations, Apple seems to have managed, through its recent and drastic changes to the App Store, to become the "model student." Now, it's Google that's in the spotlight.

Google Play has been under scrutiny from the European Commission since March of this year, in the context of payment methods for app purchases and the value of customer acquisition fees. In August, Google implemented some flexibilities in this area, but European regulators are dissatisfied with the results of these measures and would like to see broader concessions, considering Apple's similar actions as a model. It is expected that European authorities will agree that Apple's measures to align its business practices with regional antitrust laws are sufficient.

Google may formally make additional concessions to avoid a hefty fine in the EU, but there is no certainty that the corresponding penalties will be imposed in the first quarter of this year. Google representatives have expressed not only a willingness to continue cooperating with the European Commission, but also concern about creating more favorable conditions for the distribution of malware and the theft of user data through Google Play. Fines for violating the European Data Protection Act (DMA) can reach 10% of the company's annual revenue. On a global scale, the European Commission is also investigating Google regarding the legality of prioritizing its namesake search engine, as well as the use of online content by its AI tools, not to mention the advertising policies of the American internet giant.

According to an exclusive Reuters report, the search giant is at risk of incurring a heavy fine from the European Union as early as next year. The reason? The changes Google made to the Play Store are not enough to comply with the Digital Markets Act (DMA), and regulators are using Apple's changes as the new benchmark that Google must meet.

For those following the regulatory saga, this development is surprising. Apple was fined €500 million earlier this year and has been fiercely fighting against opening up its ecosystem. However, the “comprehensive changes” that the Cupertino company ended up implementing in Europe — which include new fee structures and greater freedom for third-party stores — seem to have convinced regulators, at least partially.

Now, the European Commission is looking at Google and asking: “Why can’t you be more like Apple?”

Google announced changes to the Play Store in August in an attempt to appease Brussels. These changes included:

-Fee reduction: Cuts in the “initial acquisition fee” from 10% to 3%.

-New models: A two-tier system for in-app transactions and purchases (IAPs).

However, Reuters sources indicate that these measures “still fall short” of expectations. The Commission considers that Google has not done enough to ensure that developers can direct customers to alternative channels fairly and without excessive friction, something that Apple's new framework (despite its complexity) seems to have addressed more satisfactorily in the eyes of the law.

Google is now in a race against time. The report suggests that the company still has an opportunity to avoid the financial penalty. Google can offer new changes and concessions to regulators before the fine is formally applied, which is expected to happen in the first quarter of 2026.

If Google fails to match the “Apple standard” in time, it could face one of those astronomical fines for which the EU has become famous in the tech sector.

mundophone