JAKARTA Alphabet's unit, Google, will be faced with allegations of violating EU rules designed to limit the power of giant tech companies (Big Tech). This comes after Google's proposed changes to its search results were deemed to have failed to meet EU antitrust regulators' concerns and competitors.
The move by the European Commission comes amid tensions with US President Donald Trump, who sided with US tech companies lobbying against EU regulations and criticizing fines as a form of tariff. This sparked fears that EU regulators might soften in dealing with Big Tech companies.
The European Commission has been investigating Google for alleged violations of the Digital Markets Act (DMA) since March last year. One of the investigations focuses on whether Google prioritizes its vertical search engines such as Google Shopping, Google Flights, and Google Hotels over competitors, as well as whether the company discriminates against third-party services in Google search results.
The allegations that will soon be filed are related to this matter, the sources said.
The European Commission declined to comment. Google referred to a blog post last December by Oliver Bethel, Google's EMEA Competition Director, who stated that the company was trying to find a balanced solution with the European Commission. Bethell added that further changes to Google's search results format to satisfy competitors could eliminate features that are beneficial to users.
In recent months, the US tech giant has announced a series of changes to the format of search results to meet conflicting demands from small price, hotel, airline, and retailer comparison sites. However, most parties think the proposal is not in accordance with DMA.
EU antitrust regulators are also unhappy with Google's threat to return the "blue links" in search results if they cannot meet competitors' demands, said one source.
DMA prohibits Google from prioritizing its own products and services on its platform, or facing fines of up to 10% of its global annual revenue.
DMA allegations are likely to be sent to Google following a decision in the next few months regarding a separate investigation into Apple and Meta Platforms, which is more advanced, one of the sources said.
Another DMA investigation into Google highlights potential restrictions that hinder app developers from informing users about offerings outside the Google App Store for free.
These allegations mark a new chapter in the European Union's efforts to limit the dominance of big tech companies. Google, as one of the main players in the industry, has long been in the spotlight of regulators because of its unfair business practices.
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Meanwhile, tensions between the European Union and the US are heating up, with President Trump publicly supporting US technology companies and criticizing EU regulations as a form of protectionism.
On the other hand, Google's competitors and consumer groups welcome this move, insisting that stricter rules are needed to ensure fair competition in the digital market.
If proven to have violated DMA, Google could face large fines and demands to change its business practices significantly. However, the company is likely to appeal and extend the legal process over the years.
Meanwhile, the world will continue to monitor how the European Union handles the power of Big Tech, while balancing the interests of innovation, competition, and consumer protection.
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