EU set to penalize Google for failing to comply with DMA regulations

The European Commission is gearing up to charge Google for violating the Digital Markets Act (DMA) after the regulators found that Google's changes didn't sufficiently address the concerns that were raised by regulators and competitors.

The Commission has been investigating Google for potential DMA violations since March 2024. It was focusing on whether Google was favoring its own services, like Google Shopping and Google Flights, over those of competitors in search results. This could have made people use Google's services more, even if other sides have better deals.

There were also concerns about restrictions that might have prevented app developers from users about offers outside of the Google Play Store. In order to comply, Apple had also previously allowed Spotify to display pricing information when bought from outside the App Store.

For starters, the Digital Markets Act requires "gatekeepers" like Google, Apple, Microsoft, Meta, Amazon, and ByteDance to comply with DMA's specific obligations for fair competition and to prevent anti-competitive practices since these companies hold significant market power and provide essential services that connect a large number of businesses with consumers.

Google had earlier tried to make some changes to its search results to address these concerns. They've tweaked the design and even removed some features to comply with the DMA. The company said, in a blog post from November 2024, that although the changes benefited comparison websites, some airlines, hotel operators, and small retailers have suffered, with free direct booking clicks down as much as 30%.

Despite the efforts, the European Commission doesn't seem happy and is going forward with the fines for violating the DMA. The charges would be formally communicated to Google in the coming months.

Google isn't the only tech company under the EU's radar. In addition to this, the European Commission is also currently investigating potential DMA violations by other tech companies like Apple and Meta as well.

Source: Reuters