Google Faces EU Charges Over Alleged Big Tech Rule Violations
In a landmark move, the European Commission is preparing to charge Google, a subsidiary of Alphabet Inc., with breaching EU regulations aimed at curbing the influence of Big Tech. These charges come after Google’s proposed modifications to its search results failed to satisfy the EU antitrust regulator and its competitors, according to sources familiar with the matter.
The EU’s Investigation into Google
Since March 2024, the European Commission has been scrutinizing Google’s practices under the Digital Markets Act (DMA). One of the key areas of concern is whether Google unfairly promotes its own vertical search services, such as Google Shopping, Google Flights, and Google Hotels, at the expense of competitors. The upcoming charges are expected to focus on this very issue.
In response to regulatory pressure, Google has made changes to its search result formats in an attempt to address the concerns of price-comparison sites, hotels, airlines, and smaller retailers. However, these efforts have largely been dismissed by rivals as not compliant with the DMA.
The EU’s competition watchdog has so far declined to comment on the matter. Google, on the other hand, has pointed to a December blog post by Oliver Bethell, its EMEA competition director, asserting that the company is actively seeking a balanced solution with the Commission. Bethell has warned that further alterations to Google’s search result structure could compromise user experience by eliminating certain helpful features.
Potential Consequences for Google
Under the DMA, Google is prohibited from giving preferential treatment to its own services on its platforms. Failure to comply could lead to substantial financial penalties, with potential fines reaching up to 10% of its global annual revenue.
EU regulators have also taken issue with Google’s warning that it might revert to a more simplified “blue links” format for search results if it is unable to resolve competitor concerns. This move is seen as a direct challenge to EU demands for a more competitive search ecosystem.
Google vs. The EU
Broader Impact on Big Tech
Google is not the only tech giant under EU scrutiny. The European Commission is also conducting separate investigations into Apple and Meta Platforms, both of which are further along in the review process. Sources indicate that the forthcoming charges against Google are likely to follow the outcomes of these cases.
In addition to the search result prioritization issue, another EU investigation into Google focuses on potential restrictions that prevent app developers from informing users about alternative offers outside the Google Play Store without incurring additional fees.
Tensions Between the EU and the U.S.
The crackdown on Google is unfolding against the backdrop of rising tensions between the European Union and the United States. Former U.S. President Donald Trump has been a vocal critic of EU regulations targeting American tech firms, viewing them as unfair trade restrictions. His administration consistently sided with U.S. tech companies, arguing that EU-imposed fines function as de facto tariffs.
These geopolitical tensions have fueled speculation that EU regulators might adopt a more lenient stance on Big Tech in the future. However, with the DMA now fully in effect, the European Commission appears determined to enforce its provisions, regardless of U.S. political influence.
What Happens Next?
The formal DMA charges against Google are expected in the coming months. Meanwhile, Apple and Meta are also awaiting regulatory decisions on their cases. The outcomes of these investigations will set a precedent for how aggressively the EU will regulate Big Tech moving forward.
As the Technology Roundup Newsletter reports, this is just the latest development in the ongoing battle between regulators and the world’s largest technology companies. With billions of dollars and the future of digital markets at stake, all eyes will be on Brussels as the European Commission prepares to take its next steps.
For more updates on the latest trends in technology and antitrust regulation, stay tuned.
