The EU competition authority published its initial findings blaming Google of breaching the Digital Markets Act (DMA), a historic bill aimed at regulating Big Tech companies. This is a significant step towards the EU trying to curb the monopoly of the likes of Google.
The charges against Google are twofold. Firstly, the EU accuses Google of giving priority to its own services such as Google Shopping, Google Hotels, and Google Flights over third-party comparison services in search results. The practice is alleged to constitute a breach of the DMA’s prohibition on self-preferencing, which requires platforms to treat their own services equally as competitor services. The EU believes Google favors its own products at the expense of others to prevent suppliers and competitors from achieving similar equitable ranking opportunities within search results.
Second, the EU alleges Google infringes against anti-stealing policies of Google Play Store. The regulators argue that Google substantively prevents app creators from leading customers to other distribution outlets on an equal footing where consumers can obtain better bargains. Additionally, the service fees charged by Google for enabling the initial purchase of new consumers via the Play Store are discovered to be excessive and unjustified. These fees are charged over an unreasonably long period for every purchase of digital products and services, which the EU deems to be an unfair trade practice.
These preliminary findings are part of a broader clampdown by the EU on Big Tech companies. The DMA, which was enacted in 2023, is aimed at a small set of tech titans like Alphabet, the parent company of Google. The law grants the EU the power to impose hefty fines on offending firms for violating its terms, with fines of up to 10% of an annual turnover by a company across the globe.
Google has been fined numerous antitrust violations in the EU since time began, totaling more than €8 billion. The current charges could lead to massive financial sanctions if confirmed. However, Google has the option of contesting the claims or implementing further alterations to fall in line with the DMA prior to the EU issuing a final decision.
Google has reacted to the EU report by indicating that the reforms will harm consumers and businesses. The company’s point is that modifications to its search features could render it harder for users to find information they want and divert users from European companies. Google also warns that alterations in its practices for its Play Store could expose users to malware and scams by making the business divulge links to external, potentially harmful programs.
EU action against Google fits into the enforcement actions taken by the EU against other tech monopolies. Apple, for instance, has before been fined over anti-competitive direction behaviors within its App Store, and Apple’s App Store has also made initial findings over Apple’s contraventions of DMA rules. These are emblematic of the EU’s persistence in forcing businesses to adhere to the DMA as well as for promoting competition fairly in the digital market.
