The European Commission has sent two preliminary findings to Alphabet, the parent company of Google, for allegedly failing to comply with the Digital Markets Act (DMA).
The Commission’s concerns center around Alphabet’s self-preferencing in Google Search and restrictive steering rules in Google Play, which could limit competition and consumer choice.
Self-Preferencing in Google Search
Under the DMA, gatekeepers like Alphabet must ensure fair and non-discriminatory treatment of third-party services. The Commission’s initial findings suggest that:
- Alphabet favors its own services—such as shopping, travel, and financial results—over competitors in Google Search rankings.
- Alphabet displays its own services more prominently, using enhanced visual formats and dedicated spaces, which could unfairly disadvantage rival providers.
Google Play Steering Restrictions
The Commission also found that Alphabet restricts app developers from steering users to alternative payment methods and better offers outside of Google Play. Key concerns include:
- Technical barriers preventing developers from promoting external discounts or alternative distribution channels.
- Excessive fees imposed on developers over an extended period for digital purchases, exceeding what is justified under the DMA.
Next Steps & Potential Consequences
Alphabet has the opportunity to respond to the Commission’s findings and defend its position. If the Commission ultimately confirms non-compliance, it could impose significant penalties or corrective measures.
Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security, and Democracy, emphasized the importance of ensuring fair competition in digital markets:
“Ensuring Alphabet fully complies with the DMA is key to maintaining business and innovation opportunities for all providers of digital services.”
The DMA aims to regulate dominant tech platforms to ensure fair market conditions. Alphabet was officially designated as a gatekeeper for Google Search and Google Play in September 2023. The Commission’s latest enforcement actions underscore its commitment to ensuring compliance and fostering competition in the digital economy.
