EU Regulators Prepare to Charge Google Over DMA Violations
EU competition authorities are preparing to charge Google (NASDAQ:GOOG) (NASDAQ:GOOGL) for allegedly breaching the Digital Markets Act (DMA) laws, according to a Reuters report. The charges stem from proposed changes to its search results that failed to address the concerns of regulators and competitors.
- Ongoing Investigation Since March 2024
Google has been under investigation by the EU competition watchdogs since March of the previous year for suspected breaches of the DMA. - Purpose of DMA Laws
The DMA laws are designed to regulate big tech companies by acting as “gatekeepers”, ensuring fair online presence and fostering competition without market dominance.
Google’s Search Practices Under Scrutiny
Google has faced scrutiny over its search business practices, specifically accused of giving preferential treatment to its own services over competitors in search results.
- Favoring Google-Owned Services
The company has been accused of promoting its own offerings such as Google Shopping, Google Flights, and Google Hotels, while discriminating against third-party services in its search results. - Imminent Charges Related to Search Practices
Sources have indicated that the charges are directly linked to these alleged discriminatory practices.
Additional Investigations Into App Store Practices
Another investigation is focused on potential restrictions that prevent app developers from informing users about offers available outside of the Google Play Store without charge. This issue forms part of a broader review of Google’s business practices under the DMA.
Other Big Tech Companies Facing Scrutiny
The European Union has also been examining other major tech players under the DMA. In November, reports indicated that Apple (AAPL) could be the first company fined under the DMA, while Meta Platforms (META) has been under investigation for potential violations since March.
U.S. Legal Challenges for Google
In addition to European regulatory pressure, Google is facing legal action in the U.S., where it was found guilty of having a monopoly in its online search business. The Department of Justice (DoJ) has been pushing for Google to sell its Chrome web browser, a move that the company has called “extreme.”
The regulatory challenges across both continents highlight the increasing scrutiny of Google’s dominant role in the tech industry.
