The European Union has launched a formal investigation into Google over concerns that the tech giant is unfairly demoting content from media publishers in its search results. The probe announced on Thursday targets Google's site reputation abuse policy, which the company claims is designed to combat scammers.
EU's Concerns About Fair Treatment
European Commission executive vice-president Teresa Ribera expressed serious concerns about Google's practices. "We are concerned that Google's policies do not allow news publishers to be treated in a fair, reasonable and non-discriminatory manner in its search results," Ribera stated.
The investigation comes despite potential backlash from former US President Donald Trump, who has previously criticized the EU's digital regulations and threatened retaliation against American tech company penalties. The EU Commission, serving as the bloc's highest antitrust enforcer, indicated it received specific indications that Google is demoting certain search results under its controversial policy.
Google's Defense and Commission's Response
Google strongly defended its position, with Chief Scientist Pandu Nayak calling the investigation "entirely misguided and without merit." In a blog post, Nayak argued that the policy protects European users from "deceptive, low quality content and scams" and prevents spammers from using paid content on publisher websites to trick readers.
However, the Commission maintains that Google's approach harms "a common and legitimate way for publishers to monetize their websites and content" and potentially violates the Digital Markets Act (DMA). The DMA is Europe's comprehensive rulebook designed to prevent tech companies from monopolizing digital markets.
Potential Consequences and Historical Context
This investigation could result in the latest multibillion-euro fine for Google from European authorities. The EU has previously fined Google 2.95 billion euro ($3.5 billion) in September for breaching competition rules by favoring its own advertising services. This marked the fourth time Brussels has sanctioned Google with massive fines in antitrust cases since 2017.
The current investigation must conclude within 12 months and could lead to penalties amounting to 10% or more of Alphabet's annual global revenue. In extreme cases, the Commission even has the authority to dismantle and sell off parts of Google's business operations.
Ribera emphasized the investigation's importance, stating: "We will investigate to ensure that news publishers are not losing out on important revenues at a difficult time for the industry, and to ensure Google complies with the Digital Markets Act."
