EU accuses Google of antitrust violations under new digital rules

The European Commission has issued preliminary findings against Google, alleging the tech giant is breaching antitrust laws by unfairly promoting its own Shopping, Hotels, and Flights services within its search results. This marks a significant step in the EU's enforcement of the Digital Markets Act (DMA), a landmark piece of legislation aimed at curbing the power of tech "gatekeepers."

According to the Commission's initial assessment, Google's parent company, Alphabet, is giving its own services preferential treatment in search rankings, disadvantaging rival comparison providers. Furthermore, the EU claims Alphabet is violating anti-steering rules under the DMA by restricting app developers on its Play Store from directing users to alternative distribution channels.

The EU's concerns center on Google's alleged practice of favoring its own services, effectively limiting visibility and fair competition for other businesses. This, the Commission argues, stifles innovation and limits consumer choice. On the Play Store front, the EU asserts that Google is hindering app developers' ability to offer consumers cheaper alternatives outside of the Google Play ecosystem.

Google, however, disputes the EU's findings. The company argues that the proposed changes to its search results would negatively impact consumers, potentially leading to higher prices. Regarding the Play Store, Google contends that the EU's interpretation creates a false dichotomy between openness and security, potentially exposing users to harmful content.

This preliminary ruling sets the stage for a potential clash between Google and the EU. Google has the opportunity to challenge the Commission's findings and implement further compliance measures before a final decision is reached. Should the EU find Google in violation of the DMA, the company could face substantial fines, potentially reaching up to 10% of its global annual revenue.

The EU's actions underscore its commitment to fostering a competitive digital landscape and ensuring fair market practices. This ruling, along with previous investigations into other tech giants, signals a growing determination by European regulators to rein in the power of dominant digital platforms.