The European Union has accused Google of breaching its Digital Markets Act (DMA), citing concerns over the tech giant's search and Play Store practices. According to preliminary findings announced by EU Commission enforcers, Google may be treating its own services more favorably than those of rivals, and preventing app developers from freely steering consumers to alternative channels. If confirmed, the violations could attract fines of up to 10% of Google's global annual turnover.

The EU's investigation into Google's business practices began in March 2024, shortly after the DMA came into force. The law aims to promote contestability and fairness in digital markets, and applies to a handful of tech giants, including Alphabet, Google's parent company. The EU's preliminary findings suggest that Google may be breaching the DMA's requirement not to treat its own services more favorably than those of rivals, and that it may be preventing app developers from freely steering consumers to alternative channels.

Regarding Google Search, the EU believes that Alphabet treats its own services, such as shopping, hotel booking, and financial results, more favorably than similar services offered by third parties. The EU alleges that Google gives its own services more prominent treatment compared to others, displaying them at the top of search results or on dedicated spaces, with enhanced visual formats and filtering mechanisms. This, the EU argues, prevents suppliers and competitors from benefiting from fair ranking practices.

In the case of the Play Store, the EU suspects that Google is breaching the DMA by preventing app developers from freely steering consumers to alternative channels for better offers. The EU claims that Google technically prevents certain aspects of steering, and that the fees charged by Alphabet go beyond what is justified. For example, the EU alleges that Google charges developers a high fee over an unduly long period of time for every purchase of digital goods and services.

The EU's findings follow similar actions against Apple, which was fined €1.84 billion last year for unfair steering rules. The EU also issued preliminary findings against Apple's App Store for breaches of the DMA provisions last summer. While Google has made changes to its search and Play Store practices in response to the DMA, the EU believes these changes do not go far enough.

Google has responded to the EU's findings, claiming that the changes being forced upon it will hurt consumers and businesses, and "hinder innovation." In a blog post, Oliver Bethell, Senior Director, Competition, Google, warned that the EU's demands will expose Europeans to "malware and fraud from bad apps" and make it harder for people to find what they're looking for. Bethell also argued that the EU's rules will prevent Google from investing in an open platform that powers billions of phones around the world.

The outcome of the investigation remains to be seen, with Google set to respond to the EU's findings in detail. A non-compliance decision and a massive fine are possibilities if the EU confirms its preliminary view that Google is not abiding by the rules. However, the Commission could be swayed by Google's defense, or by political pressure from other regions. As the EU's Executive Vice-President in charge of competition matters, Teresa Ribera, noted, "Our main focus is creating a culture of compliance with the Digital Markets Act. Non-compliance proceedings are reserved for situations where attempts at dialogue have not been successful."