Brussels: Europe and the Arabs
The European Commission explained that Google imposes technical restrictions on app developers, preventing them from freely directing consumers to alternative channels to obtain better offers. It also criticized the fees the company charges for facilitating the acquisition of new customers through the Google Play Store.
According to media reports in Brussels on Wednesday, Alphabet (GOOGL.O), Google's parent company, announced a new step on Tuesday aimed at facilitating the process of directing customers by app developers to alternative external channels. This comes following accusations by the European Union's competition watchdog that Google violated EU regulations. According to the European news network in Brussels, Euronews, which added that according to a statement issued by Google, this step comes in response to increasing regulatory pressure. In March, the European Commission charged Google with two violations of the Digital Markets Act (DMA). This pioneering law aims to curb the power of large technology companies and ensure fair competition in the digital market. Since the beginning of 2024, Google has been under fire from the European Commission for its alleged practices of restricting app developers from informing users of offers outside its online store, Google Play, and for favoring its own vertical search services, such as Google Flights.
The Commission explained that Google technically restricts app developers from freely directing consumers to other channels for better offers. They also criticized the fees the company charges to facilitate the initial acquisition of a new customer by an app developer through Google Play.
In an official blog post, Google confirmed that, after discussions with the European Commission, app developers, and other experts, it would update some of the terms. Claire Kelly, Google's senior competition counsel in Europe, the Middle East, and Africa, said: "While we still have concerns that these changes could expose Android users to harmful content and degrade the app experience, we are updating the EU External Offers Program with review fees and more options for Android developers, following discussions with the European Commission on the Digital Markets Act." It's worth noting that Google could face fines of up to 10% of its annual global sales if found guilty of violating the Digital Markets Act. The company has already been fined more than €8 billion ($9.3 billion) by the European Union for various violations of unfair competition practices.