The European Commission has preliminary findings indicating that Google is in breach of the Digital Markets Act (DMA) by favoring its own Shopping, Hotels, and Flights services over competitors. Additionally, Alphabet is accused of violating anti-steering regulations by restricting app developers from directing users to alternative distribution channels. Potential fines could reach $35 billion. Google's senior director argues that the proposed changes may lead to higher ticket prices for consumers, as they prevent effective competition based on fair pricing.
Google is breaking European antitrust laws by favoring its own Shopping, Hotels, and Flights search services over rival comparison providers, according to the European Commission. The EU announced in its preliminary ruling today that Google's parent company, Alphabet, had also violated anti-steering rules under the Digital Markets Act (DMA).
In the first case, our preliminary view is that Alphabet is in breach of the Digital Markets Act by favouring its own products on the Google Search results page, which means suppliers and competitors do not benefit from fair ranking practices, says Teresa Ribera.
Google believes the changes Europe is pushing for in search are misguided. Bethell warns that if Google can't show travel results that take people directly to airline sites, they typically end up with a more expensive ticket because airlines have to pay commissions to intermediary websites.
Alphabet does not effectively allow Android phone users to be told about or directed to cheaper offers from app developers, making it difficult for those developers to compete.
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