EU Commission Accuses Google of Violating Digital Markets Act Over Search and Play Store Practices
The European Commission has issued preliminary findings accusing Alphabet Inc. of breaching the Digital Markets Act (DMA) in its Google Search and Google Play services. The Commission’s investigation highlights concerns that Alphabet unfairly prioritizes its own services in Google Search, such as shopping and hotel booking, while restricting third-party options. The findings suggest that Google places its services at the top of search results or on dedicated spaces, giving them more visibility and prominence over competitors.
In addition to the search-related issues, the European Commission has raised concerns about Alphabet’s practices within the Google Play Store. Under the DMA, app developers are required to inform consumers about alternative, often cheaper, purchasing options. However, the Commission’s findings indicate that Alphabet uses technical barriers and excessive fees to prevent this. Specifically, developers are allegedly restricted from steering users toward different distribution channels, and the fees charged by Google for app acquisitions are seen as unjustifiably high.
The findings are part of an ongoing investigation, and Alphabet now has the opportunity to review the Commission’s file and submit a defense. If the preliminary findings are confirmed, Alphabet could face significant financial penalties or other regulatory actions. The European Commission’s scrutiny follows Alphabet’s designation as a “gatekeeper” under the DMA in 2023, given its dominance in the search and app marketplace sectors.
The Digital Markets Act aims to ensure fair competition and limit the power of large digital platforms by regulating their market practices. If found in violation, Alphabet could face fines up to 10% of its global annual turnover, or even higher penalties for repeat offenses. This regulatory move is part of the EU’s broader effort to curb the influence of Big Tech companies and promote more competition and consumer choice in the digital marketplace.
source: nairametrics