The European Commission has postponed issuing the first penalty against Google under the Digital Markets Act (DMA), according to reports cited by the “Handelsblatt” referencing internal Commission sources. While the Commission had planned to implement the penalty within the coming days, that action has now been delayed. This would mark the initial penalty imposed on Google under the DMA and could potentially be the largest fine the EU Commission has issued under the Act thus far. Under the DMA, the EU has the authority to impose a penalty of up to ten percent of a company’s global annual turnover. Given that Google achieved a record turnover of $400 billion last year, however, sources suggest that the fine is expected to fall into the single-digit billion-euro or high hundreds of millions range. The DMA aims to prevent major technology conglomerates from controlling access to digital markets. Specifically, the investigation involves two main issues: first, whether Google exhibits preferential treatment for its own services over those of competitors; and second, if the Commission can prove that Google prevents app developers from informing users about superior offerings outside of the Google Play Store. The EU Commission declined to comment on the ongoing procedure when approached by the newspaper. Google, meanwhile, has criticized the Commission’s demands, stating that the Commission’s current actions already comply with the provisions of the DMA.
Economy / Finance
