BRUSSELS – Alphabet subsidiary Google is poised to deliver a stark warning to European Union antitrust regulators and various critics at a workshop organized by the European Commission, scheduled for Tuesday, July 1, 2025. The tech giant contends that the EU’s landmark Digital Markets Act (DMA), designed to curb the power of large online “gatekeepers,” is paradoxically hindering innovation and imposing negative consequences on both European users and businesses.
In its presentation, Google plans to advocate for increased clarity, urging regulators for more detailed guidance on compliance with the complex legislation. Simultaneously, the company will challenge its critics to provide concrete evidence substantiating the claimed costs and benefits associated with the DMA’s implementation, suggesting a lack of empirical data to support assertions of the law’s positive impacts.
DMA Background and Google’s Challenges
The Digital Markets Act came into force with the stated aim of making digital markets fairer and more contestable. It designates large online platforms meeting certain criteria as gatekeepers, imposing a list of dos and don’ts intended to prevent them from unfairly favouring their own services or disadvantaging competitors.
Google, as one of the primary companies designated as a gatekeeper under the DMA, faces scrutiny and potential penalties. The company is currently subject to specific charges under the Act, alleging that it has been favouring its own specialized search services, including Google Shopping, Google Hotels, and Google Flights, over those of competitors. Such violations could potentially result in significant financial repercussions, with fines reaching up to 10% of Google’s global annual revenue.
In response to the DMA’s requirements and the ongoing investigations, Google has been implementing changes to its services and platforms across the European Union. However, the company argues that these very changes, made in the name of compliance, are yielding unintended and detrimental consequences.
Alleged Negative Impacts on Users and Businesses
According to details gleaned from a copy of a prepared speech by Google lawyer Clare Kelly, the adjustments made by Google to comply with the DMA have reportedly led to users in Europe encountering difficulties and increased costs. Specifically, Kelly’s remarks suggest that changes have resulted in European users paying more for travel tickets. This increase is attributed, in part, to users’ reported inability to access airline sites directly as seamlessly as before, presumably due to alterations in how search results and links are displayed or prioritized.
The impact is not limited to consumers, according to Google’s presentation outline. European businesses within the travel and hospitality sectors are also reportedly experiencing adverse effects. European airlines, hotels, and restaurants have allegedly reported a significant loss in direct booking traffic, with figures cited reaching up to a 30% reduction.
Accompanying these reports from businesses are complaints from users regarding their online experience. The prepared speech refers to users complaining about encountering “clunky workarounds” when attempting to navigate or book services following Google’s DMA compliance changes. These workarounds are likely the result of altered user interfaces or processes mandated by the Act, which, according to Google, are proving cumbersome and inefficient for the end-user.
Google’s Call for Dialogue and Evidence
Google’s decision to air these grievances at the European Commission’s workshop underscores its strategy to engage directly with regulators and critics regarding the practical implementation and consequences of the DMA. By calling for more detailed compliance guidance, Google appears to be signalling that the current rules are either ambiguous or impractical, making effective and compliant operation difficult without causing disruption.
The demand for critics to provide evidence of costs and benefits serves as a challenge to the prevailing narrative surrounding the DMA’s effectiveness and necessity. Google suggests that the negative impacts it is observing and reporting – higher user costs for travel, reduced direct bookings for businesses, and user frustration with ‘clunky workarounds’ – indicate that the balance of costs and benefits may be skewed against the positive outcomes the law intends to achieve.
The workshop on July 1, 2025, is expected to provide a platform for a robust discussion between gatekeepers like Google, EU regulators, competitors, and other stakeholders. Google’s presentation is anticipated to be a central point of contention, highlighting the significant challenges and unintended consequences the tech giant attributes directly to the enforcement of the Digital Markets Act. The outcome of this dialogue could influence future interpretations and enforcement priorities of the landmark EU tech legislation.
