The European Commission is expected to bring formal charges against Google LLC over its business practices in the search market.
Bloomberg revealed the upcoming regulatory action today, citing people familiar with the matter.
Google provides a number of specialized search tools for tasks such as navigating e-commerce catalogs and booking air travel. Those tools include a feature for comparing the price of similar offers. Additionally, there are filters that make it possible to narrow down results based on factors such as a flight’s departure date.
In March, the European Commission launched a probe into Google’s specialized search tools. The concern is that Google’s search engine may rank offers from those tools higher than products surfaced by competing services. Such a practice would breach the bloc’s DMA regulation.
The DMA, or Digital Services Act, is one of two laws that the European Parliament approved in 2022 to more closely regulate the tech industry. It only applies to so-called gatekeepers, companies with a “dominant online position make them hard for consumers to avoid.” Google was designated as a gatekeeper last September along with a number of other major tech firms.
According to Bloomberg, the European Commission could issue its preliminary findings on Google’s DMA compliance next month. However, it’s believed that the deadline may be pushed back because of upcoming staffing changes at the European Commission. A final decision is expected by next April.
Google lawyers reportedly met with European Union officials this week to discuss ways of addressing the bloc’s concerns. According to Bloomberg’s sources, one idea floated by the company would involve modifying its search engine’s interface. The change would make it easier for consumers to find services that compete with Google’s specialized search tools.
If Google fails to alleviate regulators’ concerns, they could order it to change its business practices in the search market. Additionally, DMA violations carry a fine equal to up to 10% of a company’s global annual revenue.
Google has contested EU fines in the past. Earlier this week, the search giant convinced the bloc’s second highest court to annul a €1.49 billion antitrust penalty issued by the European Commission in 2019. Officials fined Google over restrictions it had imposed on ads in third-party websites’ embedded search engines.
The probe into Google’s specialized search tools is one of three DMA compliance investigations that the EU announced in March. Officials are also investigating Meta Platforms Inc. over a subscription offering that allows users to opt out of data collection for a monthly fee. Apple Inc., meanwhile, is facing scrutiny over the controls that iOS provides for changing default settings and uninstalling apps.