The European Commission, according to sources familiar with the case, is preparing to charge Google with a violation of the Digital Markets Act (DMA) after failing to satisfy the proposed changes of the technical veteran.
Big pictureThe European Union has been investigating Google since March 2023 that it advocates for its services – such as Google shopping, flights and hotels – on contestants in search results.
- Google's recent tweex for search results was to remove regulatory and industry concerns, but critics argue that changes do not go far away.
- The company has warned that further modifications can remove useful features for users.
between the linesThe regulators of the European Union are specifically disappointed with Google's threat to return the search results to the basic blue link if strict demands are made.
- The DMA prohibits self-existence by technical giants and bears punishment up to 10% of global annual revenue.
Why do we careAllegations mark a major growth in the European Union's attempt to curb Google's dominance and result in heavy fines. It can also significantly affect how products and services appear in Google search results. If the European Union forces Google to change its ranking algorithm or performance formats, it can create new opportunities for the contestants and disrupt the current advertising placement
Additionally, strict enforcement of the Digital Markets Act can lead to a higher level playground, which may potentially reduce the dominance of Google in advertising distribution. With heavy dependence on Google's ecosystem, you should closely monitor these developments to customize strategies accordingly.
What will happen nextGoogle's allegations are expected in the coming months after the decisions of separate DMA checks in Apple and Meta, which are in more advanced stages.
- Another investigation in Google focuses on whether this app prohibits developers from informing users about the outer offer outside the Google Play Store.
Ground level. Google is facing rising regulatory pressure in the European UnionAnd looming allegations can be a big example of how DMA is implemented against Big Tech.