EU working on fresh warning for Google over search practices across its services – report

EU officials are preparing a formal chargesheet against tech giant Google (NASDAQ:GOOG) (NASDAQ:GOOGL) targeting how the company displays rival product results across its different search services, such as Google Flights and Google Hotels, Bloomberg reported on Friday.

The company could face penalties of up to 10% of global annual revenue if it fails to step into line with the rules under the bloc’s Digital Markets Act, the report said.

The EU’s preliminary findings could be issued before the end of October, sources told Bloomberg, and timing could slip with the upcoming changeover of top-level officials at the European Commission. Sources said Google still has some time to offset the EU authority’s concerns, and a final decision in the case is due to come before the end of March next year.

The report said Google’s lawyers met with EU commission officials behind closed doors this week, trying to ease the watchdog’s concerns over compliance with the rules. One proposal floated by the firm includes introducing a new design into Google’s search tabs that would give users the option of navigating to alternative search platforms or direct suppliers such as hotel websites and airlines, according to other people familiar with the matter.

A Google spokesperson told Bloomberg the firm has tried to balance the needs of different types of websites while still respecting users’ choice.

The upcoming warning from the EU adds on to the tech giant’s misery, which is already caught up in antitrust cases over its search and ad business practices in the U.S.