The European Commission has postponed issuing the first penalty against Google under the Digital Markets Act (DMA), according to reports citing sources familiar with the Commission. Although the Commission had originally planned to announce the penalty in the coming days, this action has now been delayed. If imposed, this fine would mark the first penalty issued against the tech giant under the DMA and could potentially be the largest penalty the EU Commission has levied under this framework to date. Regulators have the power to fine companies up to ten percent of their global annual turnover for violations. Considering Google’s record revenue of $400 billion last year, any penalty is expected to fall somewhere between the single-digit billion range and the low hundreds of millions.
The purpose of the DMA is for the EU to prevent major technology conglomerates from gaining excessive control over digital markets. The investigation focuses on two main areas. The first concerns whether Google favors its own services over those offered by competitors. The second accusation is that the Commission alleges Google restricts app developers from directing users toward superior offerings available outside of the Google Play Store. The EU Commission declined to comment on the ongoing case when contacted by the newspaper. Meanwhile, Google has criticized the Commission’s demands, arguing that its current practices already comply with the directives set out in the DMA.