EU Opens DMA Investigation into Google Over Demotion of News Publishers in Search

Key Takeaways

• DMA Focus: The European Commission has opened formal proceedings under the Digital Markets Act (DMA) to assess whether Google is demoting news and other publishers’ content in Search.
• Policy Under Scrutiny: The probe targets Google’s ‘site reputation abuse policy’ and how it is applied to publishers that host content from commercial partners.
• Business Impact: The Commission is examining whether Alphabet’s approach restricts publishers’ freedom to conduct legitimate business, innovate, and work with third-party content providers.
• Potential Penalties: If non-compliance with Articles 6(12) and 6(5) DMA is found, Alphabet could face fines of up to 10% of worldwide turnover, rising to 20% for repeat infringements, as well as possible structural remedies in cases of systematic breaches.

Deep Dive

The European Commission has opened a formal investigation into whether Google is complying with the Digital Markets Act (DMA) after signs emerged that the company may be pushing news publishers’ content lower in search results. The case marks one of the most significant early tests of how far the EU will go in enforcing the bloc’s landmark digital competition rules.

The probe focuses on Google’s “site reputation abuse policy,” a rule the company says is designed to prevent attempts to manipulate search rankings. According to the Commission’s monitoring work, however, the policy may be having a broader effect, demoting legitimate news and media websites that host content from commercial partners. For many publishers, those partnerships are an essential part of how they monetize their content.

Regulators are now examining whether Alphabet, Google’s parent company, is providing publishers with fair, reasonable and non-discriminatory access to Google Search, as required of DMA-designated gatekeepers. Alphabet’s search engine was formally designated a “core platform service” under the DMA in September 2023, with full obligations in force as of March 2024.

The Commission said the investigation will look specifically at how Google applies the policy to publishers and whether those demotions are restricting their ability to run their businesses, innovate, or collaborate with third-party content providers. Officials emphasized that launching proceedings does not imply wrongdoing, but signals that regulators believe further scrutiny is warranted.

If EU investigators find evidence of non-compliance, Alphabet will receive preliminary findings outlining the measures regulators believe are necessary to resolve the concerns. The Commission aims to wrap up the investigation within 12 months.

Under the DMA, Alphabet could face fines of up to 10% of its worldwide turnover, and up to 20% in cases of repeated infringement. In situations involving systematic non-compliance, the Commission can go further, imposing structural remedies such as restrictions on future acquisitions or even requiring a divestment of parts of a business.

Senior EU officials underscored what is at stake for Europe’s media sector.

Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, said the EU is acting to ensure gatekeepers “do not unfairly restrict businesses that rely on them,” stressing the importance of fair treatment for news publishers at a difficult moment for the industry.

Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, said the DMA is designed to create fairer markets and protect innovation in the EU. The investigation, she said, aims to safeguard publishers’ funding, business freedom, and ultimately “media pluralism and our democracy.”

With pressure from the industry mounting and the DMA now fully in force, the coming months will reveal whether this investigation becomes a test case for how the EU intends to police the digital economy’s most powerful gatekeepers.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.