Why Google is facing an antitrust probe in the EU
What's the story
Google is facing an antitrust investigation by the European Union (EU) over its spam policy. The inquiry was launched after publishers complained that the tech giant's policy has adversely affected their revenues. The investigation could lead to another major fine for the US-based company, which has been under scrutiny for its business practices in Europe.
Policy details
What is Google's spam policy?
Google's spam policy, which was introduced in March of the previous year, targets companies that manipulate its search algorithm to boost rankings for other sites. The European Commission has found evidence that Google demotes news media and other publishers' websites when they host content from commercial partners. This practice could directly affect a common way for publishers to monetize their websites and content.
Publisher impact
EU's stance on the matter
EU antitrust chief Margrethe Vestager expressed concern that Google's policies may not treat news publishers fairly in search results. She said, "We are concerned that Google's policies do not allow news publishers to be treated in a fair, reasonable and non-discriminatory manner in its search results." The investigation aims to ensure that news publishers aren't losing out on important revenues at this critical time for the industry.
Defense strategy
Google's response to the investigation
Responding to the EU investigation, Google's Chief Scientist for Search, Pandu Nayak, called it "misguided" and said it could harm millions of European users. He defended the company's anti-spam efforts as a way to level the playing field against deceptive tactics used by some websites. Nayak also pointed out that a German court had already dismissed a similar claim against their anti-spam policy as valid and reasonable.
Regulatory framework
Potential consequences for Google
The EU investigation falls under the Digital Markets Act (DMA), a regulation aimed at curbing the power of Big Tech companies. If found guilty of violating this act, companies could be fined up to 10% of their global annual sales. The latest probe was launched after complaints from German media company ActMeraki and industry groups like the European Publishers Council and the European Newspaper Publishers Association.