Brussels (ANSA) – In a continued effort to regulate major U.S. tech firms, the European Union has once again directed its focus towards Google, recently penalized by the EU Antitrust for its advertising dominance linked to its search engine.
The Commission has initiated an investigation to determine if the tech giant has unfairly disadvantaged news publishers in breach of the European Digital Markets Act (DMA), which aims to combat anti-competitive behavior by large online platforms classified as ‘gatekeepers’.
“We are concerned that Google’s policies treat news publishers unfairly, unreasonably, and discriminatorily in search results,” stated Teresa Ribera, Vice President of the Commission overseeing competition, pledging to investigate to “ensure that news publishers do not suffer financial loss during a challenging period for the industry” and “that Google adheres to the European Digital Markets Act.”
The Berlaymont Palace is questioning how Mountain View’s approach to site reputation impacts publishing. The tech company claims this policy is designed to shield users from spam and prevent manipulation of search rankings.
However, the Commission believes that this anti-spam policy may inadvertently demote websites and media content in search results when those sites feature content from commercial partners, leading to a decrease in traffic and significant revenue losses for publishers and third-party content providers.
If found in violation, Google could face fines of up to 10% of its global revenue, with potential penalties rising to 20% for repeat offenses. In cases of systematic violations, the Commission may implement further corrective actions, including mandating the sale of parts of its business or prohibiting the acquisition of additional related services due to ongoing non-compliance. Google has responded to the investigation by labeling it “misleading” and “unfounded,” criticizing the DMA for rendering “Search” less beneficial for businesses and European users.
The American company cautioned that the investigation could “harm millions of European users,” noting a previous ruling from a German court that dismissed a similar appeal, upholding the validity and consistency of its anti-spam policy (November 13).
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