Google in Brussels’ sights: the European Commission denounces anti-competitive practices 📉

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The European Commission announced on March 19 that Google Search and Google Play would be violating European Union competition rules. This decision paves the way for potential fines for the American tech giant if it does not comply with Brussels’ requirements.

Google Search accused of discriminating against competitors 📊

In its preliminary findings, the European Commission believes that Google Search disadvantages competing companies by offering them less favorable rankings. According to the European executive, Google prioritizes its own services, particularly its price comparison tools, which appear at the top of search results.

This practice disadvantages competitors and distorts the market, especially in sectors such as hotel bookings, flight tickets, and other consumer products. By leveraging its near-monopoly, Google Search would be directing users toward its own services, thereby limiting their choices.

Google Play restricts developers’ freedom 📲

At the same time, the European Commission challenges the functioning of Google Play, Alphabet’s app store. The investigation reveals that Google imposes restrictions on developers, preventing them from directing their customers to other distribution channels. This practice limits developers’ freedom and harms competitive offerings and price transparency.

Additionally, Google forces developers to use its own payment system, which comes with high commissions, restricting their ability to promote cheaper alternatives. These practices would violate the EU’s digital market rules, which aim to ensure fair competition and reduce barriers to entry for new players.

Sanctions of up to 10% of Google’s revenue ⚖️

This investigation falls within the scope of the Digital Markets Act (DMA), which came into effect last year. Designed to prevent giants like Google and Apple from abusing their dominant positions, the DMA provides for severe sanctions. If Google fails to comply with EU requirements, it could face a fine of up to 10% of its global revenue.

These sanctions aim to compel companies to comply with regulations and ensure a fairer market. It is worth noting that Google was already fined €2.4 billion in 2017 for similar practices. However, the measures taken at the time were deemed insufficient. The current situation could lead to new penalties, potentially amounting to tens of billions of euros.

A major impact on the Tech industry 💸

The DMA targets companies classified as « gatekeepers » and imposes severe fines in case of non-compliance. Tech giants may be forced to change their business practices, particularly regarding data management and access to services, which could disrupt their business models. Moreover, European authorities aim to ensure that Tech giants do not use their position to stifle competition.

The future of relations between major tech companies and the European Union could be shaped by these new regulations. If substantial fines are imposed, they could deeply alter the business strategies of industry giants.

Tell us !!!
What do you think about Google’s practices and the impact of the DMA on the Tech industry? Share your opinion in the comments! 😊