Author: Fu Runzhi
BRUSSELS, Dec 10 (Reuters) – Alphabet’s Google could face a hefty European Union fine early next year if it does not do more to ensure its app store complies with EU rules aimed at ensuring fair access and competition, people with direct knowledge of the matter said.
The fines are likely to heighten tensions with the United States, which says a series of recently passed EU laws target American technology companies, a criticism rejected by Europe but included in a newly released national strategy document from Washington.
Google Play has been the focus of the European Commission since March, with regulators pointing to technical limitations that prevent app developers from steering users elsewhere for cheaper services.
Another issue is the service fee Google charges to facilitate app developers’ first acquisition of new customers through Google Play, which regulators say goes beyond what is reasonable.
People familiar with the matter said that Google announced adjustments to Google Play in August to make it easier for app developers to direct customers to other channels and choose charging models, but this adjustment is still not enough, and EU antitrust regulators regard Apple’s recent changes to its app store as a benchmark.
Apple overhauled its App Store in June after being fined 500 million euros over technical and commercial restrictions that prevented app developers from telling customers about cheaper deals off the platform.
Earlier this year, other sources told Reuters that EU regulators are expected to say Apple’s changes to rules and fees are consistent with the Digital Markets Act, the landmark rules that lay out a list of what big tech companies should and shouldn’t do to ensure rivals can compete and consumers have more choice.
Google could still propose more changes before regulators impose fines, possibly in the first quarter of next year, the people said, adding that the timing of any sanctions could still change.
A Google spokesperson said: “We continue to work closely with the European Commission on its ongoing investigation, but we have serious concerns that further changes will put Android and Play users at risk of malware, scams and data theft. Unlike iOS, Android is already open by design.”
The European Commission, the EU’s competition regulator, declined to comment.
DMA fines can range up to 10% of a company’s annual global revenue.
The committee also accused Google of favoring its related search services in Google searches and is investigating the use of online content in its artificial intelligence tools and services and its spam policies.
(Reporting by Foo Yun-chi; Editing by Kirsten Donovan)
