Google is once again under fire from the European Commission. According to insiders, Brussels is working on its first fine under the Digital Markets Act (DMA). This is the law that has been in place since last year to prevent large tech companies from abusing their market power. A decision is expected in the coming months.
That’s what Reuters reports. Earlier this month, Europe already slapped Google with a €2.95 billion fine for unfair practices in advertising technology. The company allegedly favored its own systems and strengthened the position of the AdX advertising exchange. This was at the expense of competitors and online publishers. It was the fourth antitrust fine in ten years. Previous penalties from 2017, 2018, and 2019 brought the total bill for Google to over €11 billion.
The upcoming criminal case revolves around the way Google organises its search services. According to complaints, the company systematically makes vertical search engines such as Shopping, Flights and Hotels more visible than comparable services from competitors. This is precisely the kind of behaviour that the DMA is designed to prevent. The law imposes heavy penalties: companies risk fines of up to 10% of their global annual turnover if they do not comply with the rules.
It was already clear in November last year that the Commission had this issue high on its agenda. At that time, Alphabet, Google’s parent company, was formally identified as one of the parties that had to adjust their policies. Google Search in particular is under pressure because the law explicitly imposes rules on search engine competition.
Previous proposals are not sufficient
Since then, Google has made several proposals to address the objections. These have so far proved insufficient to allay the criticism from price comparison sites, airlines, hotels, and retailers. Sources emphasize that the door is not yet completely closed. An improved proposal could possibly avert a new fine.
Within Google, the message is that the company has already gathered extensive feedback and that it is now time to conclude the debate. According to the search giant, the interests of millions of users and businesses in Europe must come first, rather than the demands of a few competitors.
Although the Commission does not appear to be rushing, it is clear that Brussels has no intention of backing down. Previous tensions with Washington over strict supervision of American tech companies are a factor, but the EU is sticking to its course. If the sanction goes ahead, Google will be the third major American technology company to be fined under the DMA, after Apple and Meta earlier this year.