03:24 PM EDT, 09/20/2024 (MT Newswires) -- Alphabet's (GOOG, GOOGL) Google ( GOOG ) may face a formal complaint from European Union watchdogs on the tech giant's search business model. Bloomberg reported Friday, citing people familiar with the matter.

EU officials are preparing a chargesheet under the bloc's Digital Markets Act, targeting how Google ( GOOG ) displays rival product results across different search services, such as Google Flights and Google Hotels, Bloomberg reported.

The company may face penalties of up to 10% of global annual revenue for failure to comply with the rules, Bloomberg reported.

The EU may present preliminary findings before the end of October, and a final decision might emerge before the end of March, the report said.

Google ( GOOG ) is working with the EU to ease concerns and has proposed a new design for search tabs to give users the option of navigating to alternative search platforms or direct suppliers such as hotel websites and airlines, the report said.

A Google ( GOOG ) spokesperson said the company has attempted to balance the needs of various websites, while still acknowledging user choice, and the EU commission declined to comment, Bloomberg said.

Google ( GOOG ) and the commission didn't immediately respond to requests for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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