Google to Warn EU Regulators That New Tech Rules May Stifle Innovation

The U.S. tech giant is under scrutiny for allegedly favoring its own services—such as Google Shopping, Google Hotels, and Google Flights—over competitors, charges that could lead to fines reaching up to 10% of its global annual revenue, according to Reuters. In response, Google plans to urge regulators for clearer and more detailed guidance on how to comply with the rules, while also challenging critics to present concrete evidence demonstrating the costs and benefits of the DMA.

Earlier this month, Google introduced additional modifications to its search results in an effort to better highlight rival products. However, critics argue these changes fall short of creating a truly level playing field, per Reuters.

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During a workshop organized by the European Commission, Google’s lawyer Clare Kelly will reportedly voice the company’s ongoing concerns about the real-world effects of the DMA. According to a copy of her speech seen by Reuters, Kelly will highlight that measures implemented by Google so far have unintentionally led to European consumers paying higher prices for travel tickets due to reduced direct access to airline websites.

Related: Google Submits Revised Search Plan to Avoid EU Antitrust Penalty

Kelly will also point out that European airlines, hotels, and restaurants have experienced up to a 30% decline in direct booking traffic, with users expressing frustration over complicated workarounds, according to Reuters.

Meanwhile, Google’s other legal representative, Oliver Bethell, will request more explicit instructions from regulators on what exactly the company needs to do to comply with the DMA. He will also call on critics to back their claims with solid evidence.

Bethell is expected to say, “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,” referring to the European Economic Area, which includes the 27 EU member states plus Iceland, Liechtenstein, and Norway, according to Reuters.

He will emphasize the need for regulators and stakeholders to provide “real evidence of costs and benefits” to help Google and others focus their efforts effectively, per Reuters.

Source: Reuters