EU accuses Google of unfair competition practices

The European Commission has raised concerns about Alphabet, the parent company of Google. They allege that Google has violated the Digital Markets Act (DMA) by favoring its own services over competitors. This investigation began in March 2024. The DMA targets large companies that significantly affect the economy in the EU. Companies must meet certain criteria, like earning €7.5 billion annually in the EU and having millions of active users. The preliminary findings focus on two main issues: self-preferencing in Google Search and restrictive rules in Google Play. The Commission believes Google's search results may unfairly favor its own services like Shopping and Flights. They also claim that the Play Store limits app developers by preventing them from directing customers to other buying options. Although Google has attempted to comply with the DMA by changing some aspects of its services in the past year, the Commission finds these changes insufficient. If Alphabet's actions are confirmed as non-compliant, the company could face fines or penalties. Fines for breaching the DMA can reach up to 10% of a company's global revenue, and this can increase to 20% for repeated violations. In response, Google's senior director for competition stated that the Commission's demands could harm businesses and consumers in Europe, stifle innovation, and lower product quality.