-
Google Accused of Unfair Practices in Search and App Store by EU Body – Image Credit Unsplash
The European Commission has communicated preliminary findings to Alphabet, Google’s parent company, suggesting that Google may violate the Digital Markets Act (DMA). The Commission alleges that Google’s search engine and app store practices favor its services over competitors, thus breaching the DMA’s mandate for transparency, fairness, and non-discrimination.
The Commission’s assertion stems from the DMA’s requirement that “gatekeepers” – large digital platforms acting as significant intermediaries between business users and consumers – ensure their services do not receive preferential treatment over similar third-party services.
Despite Alphabet’s reported alterations to Google Search, the Commission’s preliminary findings suggest that Alphabet still prioritizes its services, such as shopping, hotel booking, transport, or financial and sports results, over similar third-party services on Google Search. The Commission highlighted Alphabet’s practice of placing its services at the top of search results or on dedicated spaces with enhanced visual formats and filtering mechanisms.
Concerns also extend to Alphabet’s handling of app distribution via Google Play. According to the DMA, app developers should be able to inform customers of alternative, potentially cheaper options freely. The Commission’s initial findings suggest that Alphabet prevents app developers from guiding customers to offers and distribution channels of their choice and charges developers high fees for digital goods and services purchases.
Communicating these preliminary findings to Alphabet does not determine the investigation’s outcome. Alphabet now has the opportunity to defend itself by examining the investigation documents and responding in writing to these findings. A non-compliance decision will be adopted if the Commission’s initial views are confirmed. Meanwhile, the Commission aims to work with Alphabet to establish solutions that comply with the DMA’s regulations.
The DMA aims to ensure fair and competitive markets in the digital sector. The Commission’s decision on September 5, 2023, appointed Alphabet as a DMA gatekeeper for Google Search and Google Play.
Executive Vice-Presidents from the Commission, Teresa Ribera and Henna Virkkunen, stressed the importance of Alphabet’s compliance with the DMA. The goal is to ensure fair ranking practices and free choice for developers and users on Google Search and Google Play, respectively. Both officials emphasized the DMA’s role in creating opportunities for all digital service providers.
Google’s response is available here.
