Investigation focuses on potential breaches of Digital Markets Act
Life
Google is once again on a collision course with the European Union. The European Commission is not convinced that recent changes to Google Play comply with fair competition rules. If the company doesn’t offer additional concessions, it could face a hefty fine early next year.
The EU’s investigation into Google Play has been underway since March and focuses on potential breaches of fair market competition rules. According to the EU, Google is restricting app developers’ freedom to inform users about alternative payment options or cheaper offers outside the app store.
In addition to technical restrictions, the Commission is also taking a critical look at the service fees Google charges for customer acquisition via Google Play. The European regulator considers these fees to be excessively high, arguing that they put developers under financial pressure and can distort competition.
In August, Google introduced several changes to give developers more freedom in their pricing and communications. Even so, the European antitrust regulator deems those adjustments inadequate. In its assessment, it is explicitly using Apple as a benchmark. Apple made sweeping changes to its App Store in June after being hit with a €500 million fine for preventing developers from pointing users to cheaper alternatives outside the platform.
The European Commission expects Apple’s updated rules to be declared compliant with the Digital Markets Act, legislation intended to boost competition and consumer choice in the tech sector. For now, Google still has the opportunity to propose further changes before sanctions are imposed, likely in the first quarter of next year. The exact timing, however, may still shift.
The case is also adding strain to relations between the European Union and the United States. In Washington, there is a growing conviction that recent EU laws are primarily targeting American tech companies. Brussels, for its part, stresses that the rules apply to all major players.
A Google spokesperson said the company continues to cooperate with the European Commission, while also voicing concern that further easing of the rules could put the security of Android and Play users at risk. According to Google, such changes would leave users more vulnerable to malware, scams and data theft. The company also points to the greater openness of Android compared to Apple’s iOS ecosystem.
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