Google’s search engine and Play Store app store are under scrutiny for possible violations of the European Union’s Digital Markets Act (DMA). Preliminary findings released on Wednesday by the EU Commission’s enforcement officers suggest breaches by the tech giant, following months of investigation. The DMA applies to large digital platforms, including Google’s parent company Alphabet, and has been in effect since March 2024.
Violations of the DMA could result in penalties of up to 10% of Alphabet’s global annual turnover. However, the EU has yet to reach a final conclusion, and the investigation remains ongoing. We’ll keep you updated as more information becomes available.
The EU’s preliminary assessment identifies two key areas of concern. First, it alleges that Google Search gives preferential treatment to its own services over competitors’ offerings, which is prohibited under the DMA. According to the Commission’s statement, “Alphabet treats its own services, such as shopping, hotel booking, transport, financial and sports results, more favourably in Google search results than similar services offered by third parties.” The Commission further notes that Alphabet displays its services more prominently at the top of search results, often with enhanced visual formats and filtering mechanisms, adds NIXsolutions.
Concerns Over Google Play Store Practices
The second area of concern focuses on the Google Play Store. According to the Commission, Alphabet limits the ability of app developers to direct consumers to other purchasing options outside of Google’s platform. Specifically, it claims that Alphabet obstructs app developers from informing customers about alternative offers or distribution channels. Additionally, the Commission points out that the fees Google charges developers extend beyond reasonable limits. “Alphabet charges developers high fees over an unreasonably long period of time for each purchase of digital goods and services,” it wrote.
These findings follow previous DMA-related actions by the EU against other major tech companies. For example, Apple faced a €1.84 billion fine last year over governance rules in the iOS music streaming market, and its App Store was similarly flagged for DMA violations.
In response, Google has made adjustments to both its search engine and Play Store in the EU. However, the Commission believes these changes are insufficient. Alphabet argues that the enforced changes may harm consumers, reduce traffic to European businesses, and stifle innovation. Oliver Bethell, Google’s chief competition officer, warned that further adjustments could compromise user safety and limit investment in Android and Play services.
Bethell stated, “We will continue to engage with the Commission and comply with its rules. But today’s findings increase the risk that Europeans will feel even worse.”