EU Launches Investigation into Google’s Alleged Bias Against News Sites

The European Commission has initiated an investigation into Google, focusing on claims that the tech giant is unfairly disadvantaging news websites in its search results. This inquiry could lead to substantial fines for Google if it is found to be in violation of EU regulations.

The investigation centers on allegations that Google’s policies are unlawfully penalising news sites that feature commercial content from third parties. According to the Commission, these practices may hinder news publishers from generating crucial revenue, particularly as the industry faces significant challenges. Teresa Ribera, Vice-President of the Commission, highlighted concerns that such actions could undermine the financial stability of news publishers during a critical time for the sector.

Examination of Compliance with Digital Markets Act

The Commission is scrutinizing whether Google adheres to fair and non-discriminatory conditions for accessing publishers’ content through its search engine, as mandated by the EU Digital Markets Act. There are growing worries that Google’s “site reputation abuse” policy may be obstructing legitimate avenues for publishers to monetise their content.

While Google asserts that this policy aims to combat manipulation of search rankings, the Commission will investigate whether Alphabet’s practices negatively impact entrepreneurial freedom, innovation, and collaboration between publishers and third parties. This inquiry is expected to be completed within the next 12 months.

Should the investigation reveal violations, Google could face fines of up to 10% of its annual global revenue. If repeat offenses are identified, this could increase to 20%. In extreme cases, the Commission may even consider structural measures, such as breaking up the company.

History of EU Action Against Google

This investigation is not the first instance of the EU taking action against Google and its parent company, Alphabet. Since 2018, the Commission has imposed several antitrust fines amounting to approximately €8 billion. The largest penalty, exceeding €4 billion, was related to the company’s business practices surrounding the Android operating system.

As the Commission delves into this matter, the implications for the future of digital advertising and the viability of news publishers are significant. The outcome of this investigation could reshape the landscape of online content monetisation and influence the relationship between tech giants and the media industry.