Google claims that the EU’s tech rules are holding back innovation. The company claims that they not only hurt European users but also businesses alike.
Google believes that the EU’s tech laws are killing digital innovation and hurting users
Some of you are probably out of the loop, so let me provide you with some context. Google is addressing the EU’s Digital Markets Act. Google is under fire in the US, as it has been accused of favoring its own services, such as Google Shopping, Google Hotels, and Google Flights over rivals. The company could get a fine that is as high as 10% of its global revenue.
Google did try to appease the EU earlier this month, when it proposed more changes to its search results. Those changes are supposed to do a better job of showing off rival products. However, that is probably not nearly enough.
Google’s lawyer, Clare Kelly, said that Google remains “genuinely concerned about real world consequences of the DMA, which are leading to worse online products and experiences for Europeans.”
Google’s representative said that airlines, hotels & restaurants have reported considerable losses
She added that European airlines, hotels, and restaurants have reported up to a 30% loss in direct booking traffic. On top of that, users have allegedly complained about clunky workarounds.
Today, Google’s other lawyer, Oliver Bethell, will ask regulators to spell out (in detail) what they want Google to do. Also, he will ask critics to come up with hard evidence regarding the accusations.
He added that Google “needs help” to “ identify the areas where it should focus. That means bringing real evidence of costs and benefits that we can take account of with the Commission.”
Google is under a microscope in both the US and Europe these days, and things are not going well for the company. It remains to be seen what will happen as a result of these charges. Google will have to comply, but up to what degree, and how high of a fine will the EU issue. As a reminder, Google appealed a huge $4.33 billion EU fine earlier this year, following which the fine was lowered to €4.125 billion. That’s likely a sum that Google will be forced to pay. It’s an antitrust fine over Android business model.
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