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Google hit with 2 charges under landmark EU rules, risks fines

Google hit with 2 charges under landmark EU rules, risks fines

  • 19.03.2025 15:16
  • straitstimes.com
  • Keywords: Google, Alphabet

Google faces two charges under EU’s Digital Markets Act for restricting app developers and favoring its own services like Google Search and Flights. The company risks fines up to 10% of global sales if found guilty, following previous antitrust penalties totaling over €8 billion.

Alphabet ServicesGOOGLsentiment_dissatisfied

Estimated market influence

Google

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Analyst rating: N/A

Google was charged with breaching EU Digital Markets Act, risking significant fines.

Alphabet

Alphabet

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Analyst rating: Buy

Alphabet faces potential fines for Google's actions under DMA.

Context

Analysis and Summary: Google Faces EU Antitrust Charges

Key Facts and Data Points

  • Google (Alphabet) has been charged twice under the European Union's Digital Markets Act (DMA) for alleged anticompetitive practices.
  • The first charge concerns restrictions on app developers using Google Play, where Alphabet allegedly prevents developers from directing users to alternative platforms for better deals.
  • The second charge alleges that Google favors its own services (e.g., Google Flights, Google Shopping) over competitors in search results and Android devices.

Financial Implications

  • If found guilty, Google could face fines of up to 10% of its global annual sales, a significant financial risk given Alphabet's massive revenue.
  • The company has already been fined over €8 billion by the EU for previous antitrust violations.

Market and Industry Impact

  • The DMA aims to curb Big Tech dominance in Europe, with broader implications for competition in digital markets.
  • This enforcement could set a precedent for stricter regulation of tech giants like Apple, Amazon, and Meta.

Competitive Dynamics

  • Google's practices are under scrutiny for potentially stifling innovation and limiting consumer choice.
  • The case highlights growing tensions between US tech companies and EU regulators, with US President Donald Trump threatening tariffs in response to EU fines.

Strategic Considerations

  • Google may face long-term challenges in maintaining its market position if forced to comply with stricter regulations.
  • The DMA could lead to changes in how tech platforms operate, potentially benefiting smaller competitors and startups.

Regulatory Impact

  • The EU's crackdown on Big Tech aligns with global efforts to promote fair competition and data privacy.
  • This case underscores the increasing importance of regulatory compliance for multinational corporations operating in Europe.