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EU Regulators Prepare to Challenge Google Over Search Practices

By  |  September 23, 2024

The European Union is reportedly preparing to issue formal charges against Google, demanding changes to its dominant search engine operations, according to Bloomberg. This move could result in hefty fines if the tech giant fails to address EU antitrust concerns.

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    The impending charges focus on how Google presents links to competing services, particularly within its embedded search features like Google Flights and Google Hotels. Bloomberg, citing sources familiar with the situation, reports that EU antitrust authorities may announce their preliminary findings as early as the end of October, although a potential leadership shift within the European Commission could delay the decision.

    Potential Fines and Solutions

    Per Bloomberg, a final ruling is expected by March next year. Google faces the possibility of severe financial penalties if it doesn’t comply with EU regulations. According to the Digital Markets Act (DMA), a law aimed at reining in dominant digital platforms, Google could be fined up to 10% of its annual revenue if found non-compliant. With the company’s 2023 revenue exceeding $307 billion, the fine could amount to a staggering $30.7 billion.

    Google’s legal team has reportedly been in discussions with regulators about possible solutions, such as adding an option that would make it easier for users to navigate to rival services. This could help the tech giant avoid the heavy fines and further regulatory action.

    Read more: Google’s Bid to End EU Antitrust Case with AdX Sale Rejected by Publishers

    A Long-Running Legal Battle

    This latest confrontation marks a continuation of Google’s ongoing legal struggles with the EU. Earlier this month, the company lost an appeal against a $2.7 billion fine for hindering rival shopping services, although it managed to overturn a separate $1.7 billion penalty related to its digital advertising practices.

    Google is one of several companies targeted under the EU’s DMA, which identifies “gatekeepers” of the internet. Alongside Google’s parent company, Alphabet, firms like Amazon, Apple, Meta, Microsoft, and TikTok’s parent company, ByteDance, have also come under scrutiny. The EU has already taken action against Apple and Meta for anti-competitive practices, with both companies facing charges in recent months.

    Antitrust Scrutiny Expands Globally

    Google’s antitrust challenges are not confined to Europe. In the United States, the company is facing heightened regulatory pressure, with a landmark trial brought by the Department of Justice (DOJ) concerning its digital advertising monopoly nearing the end of its testimony phase. The DOJ seeks to break up parts of Google’s ad business to foster more competition.

    In another ruling from August, a federal judge found that Google holds an unlawful monopoly over online search. The second phase of this case, which will decide potential penalties, is scheduled to conclude next year, with the possibility of more stringent measures, including a breakup of Google’s services.

    Source: Bloomberg