Google Faces Potential Fine from EU Regulators Under New Digital Markets Act
Brussels is preparing to โฃissue โขaโฃ ample fineโฃ to Google, marking the first penalty under the recently implemented Digital Markets Act (DMA). the DMA, designed to curb anti-competitive practices by โlarge technology companies,โ could โขresult โขin a penalty reaching up to 10% of Google’s globalโค annualโข revenue.
This potential action follows a โฌ2.95 billion fine levied against โขGoogle earlier this month for alleged โanti-competitive behavior in its advertising technology operations. Regulators determined โคGoogle prioritized its own systems, โฃbolstering its โAdX exchange at โthe โขexpense of โrivals and online publishers – a โpractice that has alreadyโฃ resulted in over โฌ11 billion in fines for โขthe โcompany โin the last decade.
The currentโ inquiry centers on Google’s presentation of search results,โ specifically concerns that theโ company unfairly favors its own “vertical” search services – includingโ Shopping, Flights, and Hotels – over competing platforms. This practice directly contradicts the core โฃprinciples ofโ the DMA, which aims to foster fair competition in digital markets.
Last November, the European Commission formally identified Google’s parent company, alphabet, as โrequiring adjustments to its policies to complyโค withโข the DMA. Google Search, in โคparticular, is under scrutiny due to specific DMA regulations targeting search engine โฃcompetition.
While Google has submitted proposals โto address โthe Commission’s concerns, these have been deemed insufficient by price comparison sites,โข airlines, hotels, and retailers. Though an improved offer could potentially avertโ a fine, sources indicate google believes it has adequately addressed feedback and seeks resolution. The company argues that prioritizing the needs โขof European users and businesses โฃshouldโข outweigh the demands of a limited number of competitors.
Despite this โฃstance, โคthe European Commission remains resolute.โฃ Previous disputes with the โฃUnitedโ States regarding EU oversight of American tech firms haven’t deterred Brussels. Should the fine be imposed, Google will become the third major US โฃtechnology 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.