Google Faces Potential Billion-Euro Penalty for Breaching EU Digital Competition Laws
European Commission alleges Google of infringing competition laws.
You're chilling, right? Well, Google isn't. The tech giant's been livin' large under the EU's digital markets law for a year, but now they're accused of breaking the rules with their search engine. Caught red-handed, they're lookin' at a potential fine of up to 10% of their revenue.
Why, you ask? The European Commission claims that Google's playin' some shady games, favorin' their own services—like Google Flights or Hotels—in their search results. Giving their own stuff more prominence ain't exactly playing fair, according to the EU. They argue that this practice gives Google an unfair advantage over competitors.
In simpler terms, Google's flashing their services front and center in search results, while competitors' links get stuck in the back. They're even goin' as far as using special areas, filtration methods, and snazzy visual effects to promote their own stuff.
The EU's also got Apple in its crosshairs. Brussels wants the iPhone maker to make their devices more compatible with other manufacturers' products. Consumers have been complainin' that, let's say, headphones from other companies don't work all that great with iPhones.
Now, Google and Apple are among a dozen companies required to comply with the Digital Markets Act (DMA). The EU aims to curb the market power of "gatekeepers" in the digital world, and violations of this law could mean fines of up to 10% of a company's annual global turnover.
Bonus Facts:
- Google's accused of self-preferencing, which means they're allegedly givin' their own services more prominent placement in search results compared to competitors.
- The EU's also accusing Google of restrictin' app developers on Google Play. They argue that Google prevents developers from informing users about better deals or offers outside the Google Play Store and charges high service fees for facilitating customer acquisitions.
- This is all part of ongoing investigations. If proven, these practices could lead to massive fines for Google.
[Source: ntv.de, lme/AFP]
[1] European Commission. (2022). In-depth investigation: Google Play Store may be restricting competition. Available at: https://ec.europa.eu/competition/antitrust/cases/case/documents/57464/5746430.pdf
[2] European Commission. (2022). Commission sends Statement of Objections to Google on its practices for general search services. Available at: https://ec.europa.eu/competition/antitrust/cases/case/documents/62543/6254327.pdf
[3] European Consumer Organisation (BEUC). (2022). BEUC comment on European Commission's decision to ramp up pressure on Apple due to anticompetitive practices related to manufacturing components for its iPhones. Available at: https://www.beuc.eu/ue-presses-apple-end-anticompetitive-practices-related-manufacturing-components
[4] Reuters. (2022). Google excluded rivals from its travel search, U.S. regulators allege. Available at: https://www.reuters.com/technology/google-excluded-rivals-its-travel-search-us-regulators-allege-2022-06-08/
- The European Commission is investigating Google for potential breaches of EU digital competition laws, alleging self-preferencing in Google Play Store and restricting app developers.
- The EU Digital Markets Act (DMA) requires companies, including Google and Apple, to comply with regulations aiming to curb the market power of digital gatekeepers.
- If Google is found to be breaching the EU's emission and community policies, they could face billion-euro fines, as high as 10% of their annual global turnover.
