EU threatens Google parent Alphabet with billions in fines for competition violations!
The EU Commission is investigating possible violations by Alphabet of the Digital Markets Act, which could lead to large fines.
EU threatens Google parent Alphabet with billions in fines for competition violations!
The European Commission has raised significant concerns about tech giant Alphabet, the parent company of Google. In an initial assessment, the company is accused of violating the new EU digital rules. According to the commission, Alphabet severely restricts the options for app developers and does not adequately inform consumers about free offers outside of its own app stores. This particularly applies to the purchase of digital goods in apps, for which the Digital Markets Act (DMA) prohibits additional fees. However, a final decision from the Commission is still pending krone.at reported.
Alphabet and Apple face punitive measures
In addition, Alphabet is also viewed critically in the area of Google searches. The Commission finds that the company favors its own services when it comes to shopping and hotel bookings by presenting them more prominently. This could harm competitive conditions and lead to high fines, which could reach up to ten percent of total global sales. In the event of multiple violations, this amount could even rise to 20 percent. The DMA's plans aim to improve competition in the digital sector and encourage new entrants by limiting the power of large platform operators, such as investmentweek.com notes.
In addition, Apple was also confronted with a request from the EU Commission to open its iPhone more to third-party technologies. This measure is intended to make it easier to interact with devices from other manufacturers such as smartwatches and headphones. Even if Apple is critical of the requirement and fears that it will harm innovation in Europe, the Commission emphasizes the need to maintain security and data protection standards. Apple plans to formally raise these concerns with the Commission.