EU set to warn Google to change search practices or face huge 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.

EU regulators are preparing an “official charge sheet” that focuses on how Google displays links to its competitors within integrated search services such as Google Flights or Google Hotels, Bloomberg reported, citing people familiar with the matter. matter.

Antitrust officials could announce its preliminary move by the end of October — although the timeline could be pushed back until after an upcoming leadership change at the European Commission, the report said. The final decision on this issue is expected to be made next March.

Google could avoid potential fines by making changes to its business practices to appease EU concerns. The company’s lawyers are said to have discussed possible fixes with regulators, such as adding an option that would allow users to easily navigate rival services.

Google did not immediately return a request for comment.

Under EU rules, Google could face fines of up to 10% of its annual revenue if it fails to address the bloc’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 battle between Google and EU antitrust officials.

Earlier this month, Google lost a fight to overturn a $2.7 billion fine for strangling 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 have been identified by regulators as internet “gatekeepers”.

In June, Apple became the first US tech giant to be formally charged under the DMA for allegedly blocking app developers from easily steering customers to cheaper offerings outside the App Store.

Meta was also accused in July of forcing customers into a restrictive “pay or like” model for advertising on Instagram and Facebook.

Last week, the EU warned Apple it could face fines if it doesn’t agree to improve the interoperability of its closely guarded iOS software with devices made by rivals, such as smartwatches and headphones.

Google also faces an escalating antitrust crackdown in the US.

The DOJ’s landmark antitrust trial targeting Google’s alleged monopoly over digital advertising technology used by online businesses and publishers begins what is expected to be its final week of testimony on Monday. The feds are seeking a forced breakup of Google’s ad empire.

Separately, a federal judge ruled in August that Google operates an illegal monopoly over Internet search. A second phase to determine possible penalties to rein in Google — including a possible split — is expected to be completed by next summer.