Google Faces Potential Fine from EU Regulators Under New Digital Markets Act
Brussels is preparing to issue a ample fine to Google, marking the first penalty under the recently implemented Digital Markets Act (DMA). the DMA, designed to curb anti-competitive practices by large technology companies, could result in a penalty reaching up to 10% of Google’s global annual revenue.
This potential action follows a €2.95 billion fine levied against Google earlier this month for alleged anti-competitive behavior in its advertising technology operations. Regulators determined Google prioritized its own systems, bolstering its AdX exchange at the expense of rivals and online publishers – a practice that has already resulted in over €11 billion in fines for the company in the last decade.
The current inquiry centers on Google’s presentation of search results, specifically concerns that the company unfairly favors its own “vertical” search services – including Shopping, Flights, and Hotels – over competing platforms. This practice directly contradicts the core principles of the DMA, which aims to foster fair competition in digital markets.
Last November, the European Commission formally identified Google’s parent company, alphabet, as requiring adjustments to its policies to comply with the DMA. Google Search, in particular, is under scrutiny due to specific DMA regulations targeting search engine competition.
While Google has submitted proposals to address the Commission’s concerns, these have been deemed insufficient by price comparison sites, airlines, hotels, and retailers. Though an improved offer could potentially avert a fine, sources indicate google believes it has adequately addressed feedback and seeks resolution. The company argues that prioritizing the needs of European users and businesses should outweigh the demands of a limited number of competitors.
Despite this stance, the European Commission remains resolute. Previous disputes with the United States regarding EU oversight of American tech firms haven’t deterred Brussels. Should the fine be imposed, Google will become the third major US technology company penalized under the DMA, following similar actions against Apple and Meta earlier in the year. A final decision is anticipated in the coming months.
