EU uses DMA and DMA shows its power as soon as it is introduced. Conversely, they turned to Google’s parent company Alphabet to look into alleged abuses of the General Data Protection Regulation. They paid particular attention to the Google Play Store and search practices that could violate the rules.
One mission of the DMA is to establish a more equal digital marketplace where dominant companies will be regulated. In connection with this, “steering” will likely inform users about options to purchase apps elsewhere. EU officials suspect that Google’s use by EU members could lead to a denial of this right, which could be covered by charging fees or imposed limits. This means that their concern is also in the App Store (owned by Apple).
Additionally, there is an unclear issue regarding the quality of results from Google’s search that is currently being investigated. The DMA lays the groundwork for Google to do this fairly by following the principle of equality, which means providing a level playing field in search results to all services, including its products (such as Google Flights). The EU is concerned that Google uses its dominant position to prioritize its offers over those of competitors.
It will take one year to complete. Before the EU can make any claims on this issue, they will need to continue monitoring and gathering evidence. In case of non-compliance, the EU can impose sanctions, forcing the offending organization to change its operations and pay hefty fines, which could be up to 10% of its global revenue. This is an important case for Google as its outcome could affect its operations in the EU and the digital sector in general. Ultimately, Google’s position in the online market sector may be affected.
