Brussels has returned to its accusations against Google, again citing digital advertising as the reason. The European Commission is investigating the dominant search engine after finding signs that sponsored media content was harming search results, and has launched an investigation into whether the Alphabet subsidiary is not complying with the Digital Markets Regulation (DMA). The move opens up a new front for the EU against advertising giants. Just over two months ago, the department headed by Teresa Rivera imposed a fine of 2.95 billion.
For the commission, sponsored content is a “common and legitimate way for publishers to generate income from web pages and content.” Instead, “in its monitoring work, the European Commission has found indications that Google is damaging the web pages and content of news organizations and other publishers included in search results when websites contain sponsored content.” Specifically, what the search engine is doing is identifying them as spam, so that they may even stop appearing in search lists provided by Google Search, the EU executive’s source explains.
Google’s explanation to the committee would be that it “aims to combat practices that allegedly aim to manipulate search result rankings,” according to its “Website Reputation Abuse Policy.” The investigation therefore “focuses specifically on this practice and how this policy applies to publishers.”
Because it is managed by the DMA, the time for this investigation is significantly shorter than if the file were opened in accordance with traditional competition regulations. The commission currently has a one-year period to investigate, which could result in a fine of 10% of Google’s global revenue, which could amount to $350 billion (approximately 337 billion euros) in 2024. If repeated, penalties can rise to 20% of the bill. However, fines rarely reach this level.
The DMA also allows “the Commission to take further remedial measures, such as forcing the sale of the company or its parts or prohibiting the acquisition of additional services related to systemic non-compliance.”
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