Google Faces EU Scrutiny with Potential Hefty Fines and Orders to Revamp Search Services
By Samuel Stolton
Google is facing fresh scrutiny from European Union regulators, with potential hefty fines and mandated changes to its business model unless it promptly elevates the visibility of competitors within its extensive search ecosystem.
EU officials are drafting formal charges against Google’s parent company, Alphabet Inc., under the Digital Markets Act. This action targets how Google displays rival products in services such as Google Flights and Google Hotels. Google could face penalties up to 10% of its global annual revenue if it fails to comply with these new regulations.
Preliminary findings from the EU may arrive before the end of October, but the timeline could be affected by the transition of top officials at the European Commission. Google lawyers recently engaged with EU officials in private meetings to address these concerns, suggesting potential changes like new search tab designs to offer users alternatives to Google’s own services.
A Google spokesperson highlighted the company’s efforts to balance the needs of various websites while respecting user choices. The European Commission in Brussels has not commented on the matter.
The Digital Markets Act outlines strict guidelines for major tech platforms. This impending warning follows a court victory for the EU against Google’s alleged anti-competitive behavior in Google Search, resulting in a €2.4 billion fine. This week, Google successfully overturned a €1.5 billion fine related to online advertising practices.
The case against Google is part of a broader initiative led by EU competition chief Margrethe Vestager, who has imposed over €8 billion in fines against the company. As Vestager nears the end of her term, she will be succeeded by Spain’s Teresa Ribera.
Google joins Apple Inc. and Meta Platforms Inc. in facing formal DMA complaints. The EU has already targeted Apple’s app store policies and Meta’s subscription model for ad-free services. Recently, the EU pressured Apple to adjust its iPhone operating system to comply with the regulations.
© 2024 Bloomberg L.P. First Published: Sep 20 2024 | 11:45 PM IST
Original Story https://www.business-standard.com/technology/tech-news/google-faces-eu-ultimatum-in-fresh-attack-on-search-dominance-124092001431_1.html
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