Why it matters:
This investigation could significantly affect Google’s operations in Europe and increase the ongoing friction between the EU and the U.S. over tech regulation. As Google faces increased scrutiny, its search algorithm policies and their impact on the news industry will come under intense examination.
The big picture:
The EU's investigation is the latest move in its broader effort to regulate tech giants like Google under the Digital Markets Act (DMA), a law that provides the EU with extensive powers to monitor and penalize anticompetitive behavior. The DMA could lead to fines as high as 20% of global sales for repeat offenders.
What they're saying:
Thomas Renne, European Commission Spokesperson:
"The Commission today launched a new investigation under the Digital Markets Act into how Google’s search engine has diminished content from publishers."We are not opposed to Alphabet’s aim of achieving high-quality search results, nor are we against anti-spam policies. But we object to the unjustifiable application of these policies to news publishers."
Teresa Ribera, EU Antitrust Chief:
"We are concerned that Google’s policies do not provide news publishers with fair and non-discriminatory treatment in search results."
Google: The tech giant labeled the investigation "misleading and unfounded," defending its anti-spam policies as necessary to protect users from low-quality content.
Key points:
The EU’s investigation examines how Google’s anti-spam policies might unfairly impact news publishers and their ability to generate ad revenue.
The Digital Markets Act (DMA) allows the EU to impose up to 10% fines of global sales on companies violating the regulations, with potential increases for repeated offenses.
This investigation comes shortly after the EU imposed a €2.95 billion fine on Google for anti-competitive behavior related to its search engine preference.
Go deeper:
Google’s dominance in search and its power to influence content visibility have raised concerns globally. While Google argues its policies aim to protect users, critics argue they may be harming the news industry, which has already seen a decline in advertising revenue.
Hossein Vaez - ahmad shirzadian
