Google, under its parent company Alphabet, is expected to face charges for violating EU regulations designed to curb the dominance of Big Tech. Proposed modifications to its search results failed to alleviate concerns from the EU antitrust regulator and its competitors, as informed by sources familiar with the issue in Brussels.
The European Commission's action coincides with tensions involving U.S. President Donald Trump, who has aligned with American tech behemoths lobbying against EU policies and criticizing fines as a type of trade barrier. This alignment has raised worries that the EU regulatory body might soften its stance on Big Tech.
The European Commission began investigating Google under the Digital Markets Act in March last year. One aspect under scrutiny is whether Google privileges its specialized search engines like Google Shopping, Google Flights, and Google Hotels over competitors, and if it unfairly treats third-party services in its search results.
According to insiders, the imminent charges pertain to these concerns. While the EU competition watchdog refrained from commenting, Google referenced a blog post by its EMEA competition director, Oliver Bethell, who affirmed the company's efforts to reach a fair resolution with the Commission.
Bethell cautioned that making further adjustments to Google’s search results to satisfy rivals might lead to the removal of certain user-friendly features. Despite recent modifications to search result formats, aimed at appeasing various stakeholders, many, including price-comparison sites, hotels, airlines, and small retailers, have rejected these measures as not complying with the DMA.
Additionally, EU antitrust regulators are displeased with Google’s threat to reintroduce blue links in search results if it fails to address competitors' requests, as per one source. Under the DMA, Google faces potential fines up to 10% of its global annual revenue if it continues to favor its own products and services on its platforms.
Expectedly, the DMA charges will likely be directed at Google after rulings are made in the coming months on separate investigations into Apple and Meta Platforms, which are reportedly at more advanced stages, as stated by an insider. Another DMA inquiry concerning Google aims to investigate any perceived obstacles hindering app developers from communicating free offers outside the Google App Store to users.