Google Fails To Resolve EU Search Dispute, Faces Major Antitrust Risk

Alphabet Inc.’s (GOOGL) Google said it has failed to resolve pushback from European hotels, airlines, and specialized search providers after failing to settle disagreements over its display of search results. 

Google's attorney Oliver Bethell, in a LinkedIn blog post on Wednesday, said, "Competing interests continue to pull us in different directions".

Alphabet stock traded 1% higher on Wednesday afternoon after the news. 

On Stocktwits, retail sentiment around Alphabet remained in ‘neutral’ territory with ‘normal’ levels of message volume.

Bethell said that although feedback was welcomed during the process, it’s now essential to conclude the discussion without allowing the preferences of a select few to outweigh the advantages Search delivers to millions of users and businesses across Europe.

“We now need to bring this debate to an end…” he wrote in the post.

According to a Reuters report, the discussions between Google and European businesses, held during a July 7–8 workshop, could expose the tech giant to substantial penalties under the European Union’s (EU) Digital Markets Act (DMA).

Google's latest effort to address accusations that it gives preferential treatment to its own platforms, such as Google Shopping, Hotels, and Flights, over competitors concluded without a resolution.

Adopted in 2022, DMA aims to create fairer competition by curbing the dominance of major tech platforms and supporting smaller digital businesses. 

During the workshop, Google proposed two potential fixes – each involved placing vertical search services prominently at the top while pushing broader listings, such as hotels, airports, and dining spots, further down the page. Yet, the suggestions failed to win over all stakeholders.

Back in March, the EU charged Google with breaching antitrust rules by prioritizing its own platforms like Google Shopping, Hotels, and Flights over competing services.

With opinions divided, regulators are expected to issue a binding decision in the coming months. If Google fails to comply, the company may face heavy fines under the DMA, which may amount to up to 10% of the firm’s global annual revenue.

Beyond Google, the EU has also fined Apple Inc. (AAPL) and Meta Platforms Inc.(META), highlighting its firm approach to regulating digital competition among tech giants.

Also See: TikTok Is Reportedly Building A New US-Only App To Address National Security Concerns

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