The EU Allows Google More Time to Respond to Issues in Antitrust Probe
In Focus
- Google is facing DMA violation changes in the EU
- The company proposed adjustments to sections of its anti-spam rules
- The EU termed the proposals as inadequate
The EU has allowed Google additional time to address Digital Markets Act (DMA) violations. The move comes after the European Commission, which serves as the antitrust enforcer, termed Google’s proposal in the EU antitrust case as inadequate. The DMA is designed to make digital markets fairer and more competitive by regulating dominant platforms.
Extension Is a Turning Point in the Google Dispute
The European Commission has charged Google for dominating the digital market with its app store and search products. The extension is a major turning point in the long-running regulatory dispute that could result in a significant penalty or changes to Google Search and Google Play Store operations.
“The reality for now is that solution is simply not strong enough. So we’re giving Google a bit more time to keep engaging with the Commission to offer a solution that really addresses the concerns in the interest of European businesses and European citizens,” European Commission Spokesperson, Thomas Regnier said as cited by Reuters.
The regulator currently reviewing on the DMA violation case. The EU could impose an antitrust fine of up to 10% of the tech company’s global yearly revenue. The Google EU fine could potentially reach, or even surpass the $11.2 billion mark, depending on penalties previously imposed on the company. Repeat violations could push penalties to 20% of the companies.
Why Did the EU Investigation on Google Entail?
The EU’s investigation on Google revolved around three key issues. The EU accused the tech company of self-preferencing its Search services over those of its competitors. These services include shopping, flight results, and hotel booking. EU publishers and search firms have complained about this practice for a long time.
The probe also focused on Google Play store for anti-steering practices, where developers were prevented from directing users to alternative payment methods. The third issue in the probe related to sharing of search data, anti-spam policies, and ranking of publisher content.
The EU is pushing Google to make search data accessible to competing AI chatbots and search engines. Specifically, the Commission warned that Google’s “site reputation abuse” policy could affect publisher revenue flows.
Last month, the EU proposed measures to enable Google to comply with the Digital Markets Act (DMA). The tech company proposed adjustments to sections of its anti-spam rules. The modifications would enable news publishers to host specific third-party advertiser content, without the risk of low visibility in Search regulators. The tech giant said it continues to engage EU regulators but argued that its focus is to protect users from deceptive practices and keep Search useful.
What Next for Google?
The time extension gives Google a chance to present a strong structural remedy to avoid enforcement measures or reduce the severity of penalties. If it fails to do so, the EU could impose stiff penalties and compel the tech giant to change the way its products work in Europe. The tech giant is facing multiple regulatory probes globally, particularly in the U.K. and the U.S.
