Key insights
- The EU Commission is giving Google more time to address concerns related to the Digital Markets Act, as their initial proposal was deemed insufficient. This ongoing regulatory scrutiny in Europe adds to the headwinds for Google and other Big Tech companies, potentially impacting investor sentiment, but the direct financial impact on US equities is currently limited.
BRUSSELS, May 8 (Reuters) - EU regulators are giving Alphabet’s Google a little bit more time to sooth their concerns after a previous proposal from the company fell short, the European Commission said on Friday.
"Google is engaging with the Commission to defend itself and in other in order to offer a solution that really addresses the concerns that were raised in the case and in the preliminary findings," Commission spokesperson Thomas Regnier told a daily news conference.
"The reality for now is that solution is simply not strong enough. So we’re giving Google a bit more time to keep engaging with the Commission to offer a solution that really addresses the concerns in the interest of European businesses and European citizens," he said.
The Commission, which acts as the EU competition enforcer, has charged Google with breaching the Digital Markets Act, which aims to rein in the power of Big Tech, and is in the midst of finalising its decision that could include a fine against Google.