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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.

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.

Dutch Court Confirms Apple Abused Dominant Market Position in Dating App Case

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A Dutch court has upheld a 2021 ruling by the Netherlands Authority for Consumers and Markets (ACM), confirming that Apple abused its dominant position in the dating app market through restrictive practices imposed via its App Store.

The Rotterdam District Court ruled that Apple was unfairly forcing dating app developers to use its in-app payment system, prohibiting references to alternative payment methods, and charging up to 30% commission (or **15% for smaller developers). These practices, according to the court, violated EU antitrust regulations.

In 2021, ACM had fined Apple €50 million ($58 million) for failing to comply with its order to change these app store policies. Monday’s court decision affirms that the regulator was justified in both its assessment and the penalties it imposed.

Apple announced it will appeal the ruling, defending its policies as protective of user privacy and security. “This ruling undermines the technology and tools we’ve created to benefit developers and protect users’ privacy and security, and we plan to appeal,” an Apple spokesperson said in a statement to Reuters.

The case highlights growing regulatory scrutiny of Apple’s App Store rules, which have come under fire in several jurisdictions for being anti-competitive. It also adds to the pressure from EU’s Digital Markets Act (DMA), which is designed to open digital markets and limit the control of dominant platforms.