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EU Digital Rules Hurting Innovation and European Users

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Google is warning that the European Union’s Digital Markets Act (DMA)—a sweeping antitrust law targeting Big Tech—is stifling innovation and leading to worse experiences for European consumers and businesses. The message will be delivered Tuesday at a European Commission workshop convened to allow Google critics to voice concerns and seek clarity.

Google’s legal team will argue that the new regulatory demands, intended to reduce the dominance of platforms like Google Shopping and Google Flights, are backfiring. According to Clare Kelly, one of Google’s lawyers, the company’s efforts to comply have resulted in clunky interfaces, higher ticket prices, and a 30% drop in direct booking traffic for airlines, hotels, and restaurants across Europe.

“We remain genuinely concerned about real world consequences of the DMA, which are leading to worse online products and experiences for Europeans,” Kelly is expected to say, according to remarks seen by Reuters.

The Digital Markets Act, which came into force in March 2024, imposes strict obligations on companies designated as “gatekeepers”, like Alphabet’s Google, Apple, Amazon, Meta, Microsoft, and ByteDance. Violations can result in fines up to 10% of global annual revenue.

In response to DMA scrutiny, Google has modified its search display to better highlight rival services, but critics say the changes don’t go far enough to ensure genuine competition. Google’s Oliver Bethell will call on regulators to provide clearer compliance guidelines to avoid delays and uncertainty.

“If we can understand precisely what compliance looks like, not just in theory, but taking account of on-the-ground experience, we can launch compliant services quickly and confidently across the EEA,” Bethell will say.

He also challenges Google’s critics to provide evidence-based analysis of both the costs and benefits of proposed remedies. “We need help identifying the areas where we should focus,” Bethell will argue, urging for data-driven input that can be jointly assessed with the Commission.

The Commission’s workshop—attended by EU officials, competition experts, and Google rivals—aims to clarify compliance expectations and evaluate whether the DMA is achieving its stated goals without unintended negative consequences.

Trump-Musk Clash Triggers Scrutiny Fears Across Tesla, SpaceX, and Other Ventures

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Former U.S. President Donald Trump’s call to review subsidies awarded to Elon Musk’s companies has sparked concerns of heightened regulatory scrutiny across the billionaire’s business empire, which spans automotive, space, energy, brain tech, and social media. The threat of government intervention may disrupt operations or stall innovation in several of Musk’s ventures. Here’s a breakdown of the U.S. agencies involved:

National Highway Traffic Safety Administration (NHTSA)
Tesla is under continued investigation by the NHTSA, especially concerning its advanced driver assistance systems. The agency is reviewing incidents involving Tesla’s robotaxi service in Austin, including videos showing vehicles misbehaving in traffic and in adverse weather. These inquiries extend broader probes into Tesla’s Full Self-Driving (FSD) technology, particularly related to safety during poor visibility.

Federal Communications Commission (FCC)
The FCC has begun reviewing its spectrum sharing policies, which could affect SpaceX’s Starlink satellite internet service. SpaceX is seeking new spectrum access to expand satellite coverage, but decades-old limits on signal power remain a barrier. The review could influence future Starlink deployments and broadband expansion goals.

Food and Drug Administration (FDA)
Neuralink, Musk’s brain implant startup, falls under the FDA’s oversight. After an initial rejection due to safety concerns, the FDA granted clearance for clinical trials, which are currently underway in the U.S. Neuralink is also exploring trials in Canada. The FDA will decide if Neuralink’s implants can eventually be marketed.

Environmental Protection Agency (EPA)
The EPA monitors SpaceX’s wastewater output at its Texas launch site and coordinates with other federal agencies under the National Environmental Policy Act. SpaceX’s rocket activities must pass environmental impact assessments to ensure compliance with land, water, and wildlife protection standards.

Federal Aviation Administration (FAA)
In September, the FAA proposed a $633,000 fine against SpaceX for violating licensing requirements before two 2023 launches. The FAA continues to investigate the company’s safety compliance, especially after repeated rocket explosions. Additional restrictions may follow.

Securities and Exchange Commission (SEC)
Musk is facing litigation from the SEC related to his 2022 acquisition of Twitter (now X). The agency has also probed Neuralink’s compliance and transparency, according to a December 2023 letter from Musk’s attorney, posted on X.

Federal Trade Commission (FTC)
The FTC oversees data and privacy protections at Musk’s social media platform, X. The agency is also investigating antitrust allegations, reviewing whether media watchdog groups coordinated an advertiser boycott that Musk claims is illegal.

Regulatory Risk Outlook
Trump’s renewed focus on Musk’s government support could pave the way for increased enforcement or changes to existing subsidies, affecting growth trajectories across his enterprises. With Musk already under the microscope at multiple agencies, the political escalation adds another layer of complexity.

Google Proposes Tweaks to Search Results to Avoid EU Fine Under Digital Markets Act

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Google has offered new concessions to the European Union in an effort to avoid potentially steep antitrust penalties, according to documents reviewed by Reuters. The tech giant’s latest proposal seeks to address concerns that it has been unfairly favoring its own services—like Google Shopping, Google Hotels, and Google Flights—over those of competitors, in violation of the EU’s Digital Markets Act (DMA).

The DMA, which came into force earlier this year, establishes strict requirements for dominant tech companies—or “gatekeepers”—to ensure fair competition and increased consumer choice. The European Commission formally charged Google three months ago, citing anti-competitive practices in vertical search results.

In response, Google has suggested offering a dedicated box at the top of its search results page to showcase a selected third-party vertical search service (VSS), such as platforms specializing in hotel or flight searches. This VSS would be chosen using objective, non-discriminatory criteria and would display three direct links—such as to hotels, airlines, or transport services—formatted identically to Google’s own listings.

Other competing VSS platforms would still be displayed lower in the rankings, but only in expanded view if users click to see more results. Google stated in the documents that while it does not agree with the Commission’s preliminary findings, it is willing to make changes “on a without prejudice basis” to reach a resolution.

The European Commission has called for a feedback meeting with rivals on July 8. Some competing companies told Reuters—on condition of anonymity—that the proposed changes fall short and do not ensure genuine parity with Google’s own offerings.

This is not Google’s first encounter with the EU on similar grounds. In 2017, the company was fined €2.4 billion for giving illegal advantage to its comparison shopping service. The current proceedings under the DMA could result in further significant penalties if the EU deems Google’s remedies insufficient.