The European Commission has charged Google with violating European antitrust laws by favoring its Shopping, Hotels, and Flights search services over competitors. Additionally, Alphabet, Google’s parent company, breached anti-steering rules under the Digital Markets Act (DMA) by restricting app developers on its Play Store from directing customers to other channels. Google can contest these preliminary charges or adjust compliance measures before the final ruling. The EU may impose fines up to 10 percent of Alphabet’s global annual revenue, potentially reaching $35 billion based on 2024 earnings. Teresa Ribera, European executive vice president, stated that Alphabet’s practices hinder fair ranking for suppliers and competitors. Google argues that the proposed changes are misguided and could lead to higher costs for consumers and reduced traffic for businesses. Regarding app distribution, the EU claims Alphabet does not adequately inform Android users about cheaper offers outside the Google Play store. Google’s senior director of competition, Oliver Bethell, criticized the findings, stating they create a false choice between openness and security. Henna Virkkunen, Europe’s EVP for tech sovereignty, emphasized that Alphabet’s full compliance with the DMA is crucial for ensuring business and innovation opportunities for all digital service providers. This announcement follows an ongoing investigation into Google Search since March 25th and previous fines for similar practices. Google has made several changes to comply with the DMA, including new search layouts and removing certain widgets for EU users. The DMA targets specific gatekeepers, requiring them to allow more interoperability and avoid preferential treatment for their own services. Alphabet was designated as a gatekeeper in September 2023. — news from The Verge
