European Union antitrust regulators next week will seek feedback on the proposal made by Google to comply with the tech rules that are aimed at promoting fair competition. According to a report by the Reuters, people with direct knowledge of the matter said that this feedback might decide whether the tech giant will face formal charges or not. In March, the European Commission initiated an investigation into Google to determine whether the company gives preferential treatment to its own vertical search engines—such as Google Shopping, Google Flights, and Google Hotels—over competing services, and to find out if it discriminates against third-party services in Google Search results.
This investigation was launched after rivals, including comparison shopping sites, alleged that Google did not comply fully with the EU’s Digital Markets Act (DMA) which was focused on reining in the power of big tech and establishing equal ground for smaller competitors.
What Did Google Propose?
To address concerns from comparison shopping sites, Google’s recent proposals suggest adding a distinct section below its own product listing ads in search results for competitors. Additionally, the company has proposed creating two adjacent sections: one for intermediaries and another for direct suppliers such as airlines, hotels, and retailers.
The European Commission plans to conduct separate workshops from September 9 to 11 to gather feedback from these groups on the proposals. Google has not been invited to participate in these workshops. The EU competition watchdog, in an email, wrote, “The workshops in September are about Alphabet’s compliance with Article 6.5 DMA on self-preferencing and involve a variety of third parties.”
Google, on the other hand, said, “We have engaged with the European Commission and industry stakeholders over the past year, receiving and responding to feedback in an effort to balance a wide spectrum of views across the ecosystem. We will continue to engage over the coming months,” reported Reuters.
If Google fails to address the regulatory concerns, it could face formal charges by the end of September, potentially leading to a substantial fine of up to 10 per cent of its global annual revenue, according to sources, Reuters reported.