Concerns Raised Over Google’s Non-Compliance with Digital Markets Act

Key Takeaways

• Google’s Alleged Non-Compliance: A coalition of challengers and consumer groups urges the European Commission to investigate Google’s failure to comply with key provisions of the Digital Markets Act (DMA), including data sharing and consumer choice screens.
• Restricted Data Access: The group claims Google limits access to critical search data, which hinders competition and the ability of challengers to innovate.
• Choice Screens and Default Settings: Google has reportedly failed to fully implement choice screens on Android devices and continues to create barriers for users who wish to change their search engine defaults.
• Request for Commission Action: The coalition calls for the European Commission to open investigations into Google’s practices to ensure DMA’s goals of fair competition and consumer empowerment are met.

Deep Dive

In an open letter addressed to the European Commission, a coalition of challengers in the search engine and browser markets, alongside civil society organizations and consumer advocates, are calling for action over Google's alleged non-compliance with the Digital Markets Act (DMA). The letter, sent to Executive Vice-President Teresa Ribera Rodríguez and Executive Vice-President Henna Virkkunen, seeks the Commission's intervention to ensure that Google adheres to its obligations under the DMA—specifically, provisions intended to promote competition, improve consumer choice, and ensure a more balanced digital landscape.

The Digital Markets Act was designed to address the dominance of major tech companies, particularly those designated as “gatekeepers” due to their control over critical services and infrastructure. Google, as the designated search engine gatekeeper, has specific responsibilities under the law. The open letter argues that Google has not fully met these obligations, undermining the regulation’s goal of fostering fair competition.

One of the key provisions highlighted in the letter is Article 6(11), which mandates that Google must provide “fair, reasonable, and non-discriminatory” access to data, including search ranking, click data, and queries. The letter raises concerns that Google has been limiting access to this data, including by using anonymization safeguards that, according to the group, result in up to 99% of search queries being excluded from datasets that competitors could use. The coalition contends that this practice restricts fair competition and hinders the ability of other search engines to compete on equal footing.

Additionally, Articles 6(3) and 6(4) of the DMA require Google to implement “choice screens” on Android devices, enabling users to easily select their preferred search engine and browser. The letter claims that Google has failed to display choice screens on all Android devices in circulation prior to March 2024, significantly limiting the effectiveness of this provision. The group also asserts that Google has continued to create barriers for users who want to change their search engine defaults, such as locking certain access points to Google and preventing the use of simple, accessible settings for default changes.

The Importance of DMA Enforcement

The letter stresses the importance of fully enforcing the DMA, arguing that failure to do so could undermine the regulation’s integrity. If the Commission does not intervene, the coalition warns that businesses and consumers will continue to face the consequences of Google’s anti-competitive practices, which could ultimately stifle innovation and harm consumer choice. The call to action also comes in the context of broader global efforts to rein in Google’s market power, including recent legal proceedings such as U.S. v. Google and the UK’s Competition and Markets Authority's (CMA) focus on Google’s search services under the new DMCC regime.

The signatories of the letter are urging the European Commission to open investigations into Google’s compliance with the relevant provisions of the DMA, particularly those focused on access to data and consumer choice. They argue that these steps are necessary to ensure that the DMA’s goals of fair competition and improved consumer choice are fully realized, benefiting both businesses and consumers alike.

The letter emphasizes that the Commission’s response to Google’s actions could play a pivotal role in shaping the future of digital markets in Europe. By holding Google accountable, the Commission has the opportunity to reinforce the principles of fair competition and consumer empowerment, ultimately ensuring that the DMA achieves its full potential.

As the debate continues, the letter serves as a reminder that regulations like the DMA are crucial in maintaining a competitive digital economy. The coalition’s appeal highlights the ongoing challenges that regulators face in balancing the power of large tech companies with the need for a fair and open market. How the European Commission responds to these concerns could have lasting implications for both the future of digital markets and the ability of businesses to compete in an increasingly complex and interconnected world.

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