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Google Faces EU Charges Over Antitrust Violations
Alphabet’s Google is on the brink of facing charges from the European Union for alleged violations of regulations aimed at curbing the influence of major technology firms. This development follows the company’s unsuccessful attempts to modify its search results in a manner that would satisfy both EU antitrust authorities and its competitors, according to sources familiar with the situation.
The European Commission’s actions come at a time of heightened tension between the EU and the administration of former US President Donald Trump, who has aligned himself with American tech companies opposing EU regulations. Trump has characterized fines imposed on these firms as a type of tariff, raising doubts about the EU’s commitment to stringent oversight of major technology players.
The European Commission has been scrutinizing Google for possible infringements of the Digital Markets Act (DMA) since March of the previous year. One of the primary investigations examines whether Google gives preferential treatment to its own vertical search services, such as Google Shopping, Google Flights, and Google Hotels, while discriminating against third-party services presented in its search results. This issue is at the core of the anticipated charges against the tech giant.
The EU competition authority has refrained from commenting on the matter. Meanwhile, Google has pointed to a blog post by Oliver Bethell, its Director of EMEA Competition, where he indicated that the company is committed to collaborating with the European Commission to find a reasonable resolution. However, Bethell warned that additional changes to Google’s search result formats to appease its rivals might lead to the removal of certain beneficial features for users.
In recent months, Google has introduced numerous alterations to its search result displays, attempting to meet the contrasting demands of price comparison sites, airlines, hotels, and smaller retailers. Unfortunately for Google, many of these stakeholders have rejected the changes as insufficient to comply with the stipulations of the DMA.
Moreover, EU regulators have expressed dissatisfaction with Google’s threat to reinstate traditional “blue links” in search results if it cannot accommodate the requests made by its competitors, according to one source.
The Digital Markets Act forbids Google from showing favoritism toward its own products and services within its platforms. If found in violation, the company could face penalties amounting to as much as 10 percent of its total global revenue.
As regulatory scrutiny intensifies, the expected charges against Google may be formally issued after the decision-making processes concerning separate investigations into other tech giants like Apple and Meta Platforms, which are currently further along.
Another ongoing inquiry into Google under the DMA is examining restrictions that potentially prevent app developers from informing users about deals outside of the Google App Store without incurring charges.
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