EU set to warn Google to change search practices or face major fines: report
European Union regulators are reportedly preparing to put Google on notice that it must make changes to its dominant search engine or face massive fines.The EU watchdogs are prepping a “formal chargesheet” that is focused on how Google displays links to its competitors within embedded search services like Google Flights or Google Hotels, Bloomberg reported, citing people familiar with the matter.Antitrust officials could announce its preliminary move by the end of October – though the timeline could be delayed until after an upcoming leadership shakeup at the European Commission, the report said.A final decision in the case is slated to occur by next March.Google could avoid possible fines by making changes to its business practices to assuage the EU’s concerns.
The company’s lawyers have reportedly discussed potential fixes with regulators, such as the addition of an option that would allow users to easily navigate to rival services.Google did not immediately return a request for comment.Under the EU’s rules, Google could face fines of up to 10% of its annual revenue if it fails to address the block’s concerns.Given the company’s 2023 revenue of more than $307 billion last year, that would mean a penalty of up to $30.7 billion.The regulatory spat is the latest blow in a long-running battle between Google and EU antitrust officials.Earlier this month, Google lost a fight to overturn a $2.7 billion fine for stifling rival shopping services, but succeeded in challenging a separate $1.7 billion fine related to its digital advertising empire.Google is being targeted under the EU’s Digital Markets Act.
The sweeping law imposes restrictions on Google’s parent company Alphabet and five other firms – Amazon, Apple, TikTok parent ByteDance, Instagram parent Meta and Microsoft – that are identified by regulators as “gatekeepers” of the internet.In June, Apple became the first US tech giant to be formally charged under the DMA for allegedly blocki...