Breaking News: EU Antitrust Regulators to Assess Google's Compliance with Tech Rules in September Workshops
By Foo Yun Chee
European Union antitrust regulators are set to evaluate Google's proposals for adhering to tech rules that promote fair competition. This move could determine whether the tech giant will face formal charges in the future.
The European Commission initiated an investigation earlier this year to examine whether Google prioritizes its vertical search engines like Google Shopping, Google Flights, and Google Hotels over competitors. Additionally, the probe will assess if Google displays bias against third-party services in its search results.
This investigation was triggered by complaints from rivals, including comparison shopping sites, alleging that Google has not fully complied with the EU's Digital Markets Act (DMA). The DMA aims to curb the dominance of Big Tech companies and create a level playing field for smaller players in the market.
Google's latest proposals include the creation of a separate box for rivals below its own product listing ads box in search results, addressing concerns raised by comparison shopping sites. The company also suggested the implementation of two distinct boxes, one for intermediaries and the other for direct suppliers like airlines, hotels, and retailers.
Workshops will be held by the Commission from September 9 to 11 to gather feedback from different stakeholders on these proposals. Notably, Google has not been invited to participate in these events.
In response to these developments, the EU competition watchdog stated, "The workshops in September are about Alphabet's compliance with Article 6.5 DMA on self-preferencing and involve a variety of third parties."
Google commented, "We have engaged with the European Commission and industry stakeholders over the past year, receiving and responding to feedback in an effort to balance a wide spectrum of views across the ecosystem. We will continue to engage over the coming months."
If Google fails to address the regulatory concerns satisfactorily, formal charges could be brought against the company by the end of September. This could potentially result in a substantial fine amounting to as much as 10% of its global annual turnover.
Analysis: This article highlights the ongoing scrutiny faced by Google in the EU regarding its compliance with tech regulations and fair competition practices. The outcome of the upcoming workshops and potential charges against Google could have significant implications for the company's operations and financial standing. Investors and individuals following tech industry developments should monitor these proceedings closely to assess the impact on Google's market position and regulatory challenges.
