Google’s Defence of Digital Markets Act Changes: Embracing Complexity

Alphabet’s Google is preparing to defend the adjustments made to its central services in response to the enforcement of the Digital Markets Act (DMA) in the European Union. In a presentation by Oliver Bethell, head of Google’s EMEA competition team, the company aims to address the criticisms and challenges brought about by the new tech regulations.

The DMA, which came into force on March 7, introduces provisions that enable users to uninstall Google’s pre-installed applications and requires their consent for the use of personal data across various services or for personalised advertisements. Additionally, Google is prohibited from displaying preference to its own products or services over its competitors on its platform.

The objective of the DMA is to limit the dominance of major tech companies, establish a fair competitive environment for smaller players, and provide users with more choices. The Act identifies companies such as Google, which control access to their platforms, as gatekeepers.

However, several competitors, including comparison shopping sites, hotels, airlines, and restaurants, have expressed concerns about Google’s compliance with the DMA. They are urging the European Commission to take action, citing a decrease in search traffic results since the implementation of the new rules.

In his address, Bethell acknowledges the complexity of the changes brought about by the DMA. He emphasizes the need to strike a balance between the new opportunities intended by the Act and the potential risks to user privacy and security. According to Bethell, this balance requires intricate trade-offs, particularly in the context of online search engine operations and the sensitive information they handle.

Bethell also addressed the demands for changes from vertical search engines, stating that some of these requests go beyond the scope of the DMA and could negatively impact the search experience for European users and businesses. He firmly asserts that the DMA should not result in a diminished search experience for Google’s European consumers.

Moreover, Bethell took the opportunity to criticise other companies designated as gatekeepers under the DMA, calling for them to demonstrate similar compliance efforts and engagement with the European Commission.

It is important to note that non-compliance with the DMA can lead to significant penalties, potentially costing companies up to 10% of their global annual turnover.

In conclusion, Google’s stance on the DMA changes underscores the intricate and challenging nature of adapting its services to comply with new regulations. The company affirms its commitment to navigating these complexities in a way that balances the interests of its users, businesses, and competitors within the regulatory framework set forth by the European Union.