Google may pay a huge fine. The EU forces changes in the search engine

Google may pay a huge fine. The EU forces changes in the search engine

The specter of a huge fine

Alphabet could lose up to 10% of its global revenues. Given the company’s current results, this means a fine of USD 35 billion (PLN 131 billion). A decision on this matter may be made this month. This is the result of ongoing antitrust proceedings.

Google is trying to alleviate the situation. On March 9, the company submitted a report in Brussels on adapting its services to the Digital Markets Act (DMA). Tests of the new version of the search engine are already underway in Europe. The changes involve less promotion of the Mountain View giant’s own services.

Changes in search results

Modules such as Google Travel and Google Hotels disappear from the search results. Algorithms now rank external websites higher. Oliver Bethell from Google believes that these modifications will extend the time it takes to search for reliable information. They may also increase airline and hotel prices.

Marcin Stypuła from the Semcore agency notices a forced regression of functionality. Users will no longer receive answers directly in the search engine. The changes also hit local entrepreneurs hard. Some companies saw bookings decline by 30% due to lower visibility on Google Maps. Entities that optimize websites mainly benefit from the changes.

The EU attacks other powers

The DMA rules also apply to other large technology companies. The list of restricted entities includes Amazon, Apple, ByteDance, Meta and Microsoft. Platform X avoided this status after an investigation. Apple, in turn, had to provide alternative app stores on iOS systems. Meta, however, is obliged to ensure the reception of messages from other messengers in the WhatsApp application.

Europe’s actions are sparking fierce opposition in the United States. The American administration treats this as discrimination against its largest corporations. Analysts from the ECIPE think-tank also criticize the new document. They believe that the directive forces companies to complete formalities instead of creating innovations. This leads to increased legal uncertainty and higher costs.

European companies support the law

A completely different approach is taken by European technology companies gathered in the EUTA association. This organization demands strict enforcement of the new regulations by the European Commission. Members of the association do not want to reopen the debate on the content of the act.

According to EUTA, the new rules will allow local creators to compete fairly with global giants. European business expects officials to strictly punish unfair practices. The law is supposed to operate efficiently so that the process of implementing changes does not get stuck in bureaucracy for years to come.

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