EU to Charge Google for Breaching Big Tech Regulations Under Digital Markets Act

Brussels, Belgium – Alphabet’s subsidiary, Google, is set to face formal charges from the European Commission for allegedly breaching the European Union’s Digital Markets Act (DMA). The move comes after the tech giant’s proposed changes to its search results were deemed insufficient to address concerns raised by the EU antitrust regulators and its competitors, according to sources familiar with the matter.

Google’s Alleged Breach of Big Tech Rules

The European Commission has been investigating Google’s compliance with the Digital Markets Act since March 2024. One of the key concerns is whether Google unfairly prioritizes its own services, such as Google Shopping, Google Flights, and Google Hotels, over competing platforms within search results. Regulators are also examining whether Google has been discriminating against third-party services on its search engine.

After months of deliberation, EU authorities are now preparing formal charges against Google, marking a significant step in enforcing strict antitrust measures on big tech companies operating within the European market.

Google’s Efforts to Address EU Concerns

In response to the ongoing scrutiny, Google has made several modifications to its search result formats in an attempt to comply with the DMA. However, these changes have been widely criticized by price-comparison websites, travel agencies, and small businesses, who argue that they fail to create a level playing field.

Google has also warned that if it cannot resolve the demands of its rivals and the European regulators, it might remove certain helpful features from search results, reverting to the older "blue links" format. This move has only heightened tensions with EU regulators, who see it as a deliberate attempt to sidestep compliance.

EU’s Strict Stance on Big Tech Regulation

The Digital Markets Act, which came into force in 2023, aims to curb anti-competitive practices by big tech companies and ensure fair competition in the digital marketplace. Under these regulations, companies like Google, Apple, Amazon, and Meta are prohibited from prioritizing their own services over third-party competitors.

Should Google be found guilty of violating the DMA, it could face fines of up to 10% of its global annual revenue—a penalty that could run into billions of dollars given Google’s immense financial scale.

Google’s Official Response

Google has not issued a direct statement regarding the upcoming charges but referred to a December blog post by Oliver Bethell, Director of EMEA Competition at Google. In the post, Bethell emphasized that the company is working closely with the European Commission to find a "balanced solution".

Bethell acknowledged that further modifications to search results could be necessary but warned that excessive changes might compromise user experience. However, this statement has done little to appease critics who argue that Google is dragging its feet instead of fully complying with EU laws.

What Happens Next?

With formal charges imminent, Google will have to defend its practices before the European Commission. If the company fails to satisfy regulators, it may not only face significant financial penalties but also be forced to restructure its search algorithms to promote fair competition.

The case also serves as a strong warning to other tech giants, signaling that the EU is serious about enforcing its antitrust regulations and ensuring that large corporations do not abuse their market dominance.

As the battle between Google and EU regulators continues, all eyes will be on how this legal showdown unfolds and what precedents it will set for the future of digital competition in Europe.