Google is at risk of being taken to task by the EU for violating DMA rules. The investigation had been running since March 2024.
Exactly 11 months ago, the European Union announced an antitrust investigation against the three Big Tech giants Google, Apple and Meta. Google risks being put on the penalty box. Although not yet formally confirmed by European regulators, Reuters is certain that the EU will find a violation of the DMA by Google.
The investigation dealt with two possible infringements. Google would abuse its search engine to give preferential treatment to its own services such as Google Shopping and Google Flights. However, the DMA determined that Google, as a so-called gatekeeper may not discriminate against third parties.
A second issue is about how Google deals with developers in Android. Google should allow developers to send customers through their apps to solutions outside the app store without owing money. However, the Android ecosystem still imposes a lot of restrictions on that.
Tensions with the U.S.
What the penalty will be for Alphabet, the parent organization that Google falls under, remains to be seen. Fines could be up to 10 percent of annual sales. With a ruling against Google, the European would send a strong signal not only to Big Tech companies, but also to the U.S. government.
Trump and his cronies fiercely oppose European regulation. They see regulations such as the DMA as a form of bullying against American (tech) companies. That said, Google is also feeling headwinds on its own soil. The U.S. Department of Justice is calling for a breakup of Google that would require it to spin off the Chrome browser and Android operating system, among other things.
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Earlier, Apple was also formally accused of non-compliance with DMA rules. This gave Apple the distinction of being the first company to be sued under the DMA. The European Union sent Apple a list of changes it must make to iOS and the App Store. Meta, after some concessions, is spared further sanctions for now, while Amazon is just coming into the crosshairs of regulators.