Google seems frustrated as it says EU losing track with DMA implementation

EU came out with a press release today wherein they said Google still needs to do a lot to be fully compliant with the Digital Market Act (DMA), which aims to ensure that big tech players like Google, Apple, Meta (called “Gatekeepers” in the DMA) don’t stifle competition with predatory practices.

Long story short, EU says that after it’s own investigation as well as inputs from several third-parties, it has come to a preliminary conclusion that Google is still falling short on two major fronts.

Firstly, Google Search still appears to favor its own services – like those related to shopping, hotel booking, transport, or financial and sports results – over competitors, showing them right at the top of the search results.

Secondly, over on the Play Store, app developers aren’t allowed to inform their customers on alternative ways to pay for apps or subscriptions. This keeps the transaction between app users and app developers tied to the Play Store, through which Google earns continuous commissions.

EU says this preliminary investigation shows Google is in non-compliance of the DMA. The info has been shared by the company, and now EU will wait for a formal response by Google before deciding what to do next. If found guilty, Google may face a fine amounting upto 10% of its global revenue.

Google didn’t wait much and fired back a response with a press release of its own. The response begins by saying that these changes will “hurt European businesses and consumers, hinder innovation, weaken security, and degrade product quality.”

Responding to EU’s allegations on Search results, Google gave an example of how the changes being suggested will end up hurting European business only.

On EU’s Google Play investigation, the company says the suggested changes will force it to choose between “a closed model and an unsafe one.”

Google ended the release effectively saying it will still try to be compliant with DMA, but the way it is being implemented is not correct.

We will keep engaging with the Commission and comply with its rules. But today’s findings now increase the risk of an even worse experience for Europeans. The DMA is designed to regulate large platforms like Google, Apple and Meta, and boost competition, but in reality, it is having the opposite effect by hurting European businesses and consumers

In case you missed, the DMA has already started to become a political issue between US and Europe.

Are you a European? What are your thoughts on this ongoing tussle between EU and Google, and the DMA in general? Share your thoughts in the comments section below.