The European Commission (EC) has formally accused Google of violating EU antitrust rules, alleging the company favors its own services, such as Shopping and Flights, in search results over competitors. If ultimately found guilty, Google could face a fine of up to 10% of its global annual revenue. Given that parent company Alphabet’s revenue in 2024 was $350 billion, the maximum fine could reach $35 billion. Additionally, Google may be ordered to revise its Play Store policies to comply with the Digital Markets Act (DMA).
Google now has the option to either contest the charges or implement further adjustments to meet EU regulatory standards, according to The Verge. The case follows an investigation initiated by the EU in March into Google’s prioritization of its services in search results—a practice reminiscent of the 2017 case when the company was fined €2.4 billion for manipulating Google Shopping results.
Accusations Against Search Results and Play Store
EC Executive Vice President Teresa Ribera highlighted that Google has breached DMA rules in multiple areas, specifically within its search results and Play Store developer policies. Ribera stated that by promoting its own services, Google prevents competitors from gaining fair visibility, ultimately limiting user choice.
In response, Oliver Bethell, Google’s Senior Director of Competition, labeled the EU’s claims as “misguided.” He also warned that banning direct links to airline websites could unintentionally lead to increased ticket prices due to intermediary commissions.
Regarding the Play Store, the EC claims that Google restricts Android users from learning about potentially better deals available from developers outside of the Play Store ecosystem. Bethell countered by arguing that the EU’s requirements force a “false choice between openness and security,” suggesting that the regulations may push Google toward either a closed model, similar to Apple, or weaken protections against fraudulent apps.
Broader Implications and Next Steps
Henna Virkkunen, another EC representative, emphasized that Google’s practices negatively impact both European and foreign businesses relying on Google’s ecosystem. According to her, strict adherence to the DMA is essential to foster fair competition and encourage digital innovation.
Google has already made some changes, including removing the Google Flights widget and adding more third-party links to its search engine, reminds NIX Solutions. However, tensions between the EU and major American tech firms remain high. Former US President Donald Trump previously criticized such EU fines, describing them as a hidden tax on American companies.
We’ll keep you updated as the case progresses and as more regulatory decisions or Google adjustments are announced.