Google Offers New Proposal to EU in Antitrust Case
Google has made a fresh attempt to address growing concerns from rivals and EU antitrust regulators by proposing changes to its search results. This move comes just a week before a crucial meeting that could potentially lead to another EU antitrust fine.
Background of the Antitrust Case
The European Commission charged Google with favoring its own services, such as Google Shopping, Google Hotels, and Google Flights, over competitors in March. This alleged practice is in breach of the Digital Markets Act (DMA), which aims to promote fair competition in the digital market.
Google’s New Proposal
Google’s latest proposal, dubbed “Option B,” is an alternative to its previous offer. The company has suggested creating a box at the top of the search page for specialized search engines, including links to hotels, airlines, restaurants, and transport services. This move aims to provide more visibility to rival services and address concerns about Google’s dominance in the search engine market.¹
Upcoming Meeting and Potential Outcomes
Google will meet with its rivals and the European Commission on July 7-8 in Brussels to discuss its proposals. The outcome of this meeting could determine whether Google faces another antitrust fine. Potential penalties for non-compliance with the DMA could be severe, with fines reaching up to 10% of Google’s global revenue.
Implications of the Digital Markets Act
The DMA is designed to regulate large tech companies and promote competition in the digital market. Google’s compliance with the DMA has been a subject of debate, with some arguing that the company’s changes do not go far enough to create a level playing field for rivals.
Google’s Concerns About the DMA
Google has expressed concerns that the DMA may stifle innovation and ultimately harm European users and businesses. The company claims that the changes made to comply with the DMA have resulted in:
- Higher Prices: European users are paying higher prices for travel tickets due to reduced direct access to airline websites.
- Loss of Direct Bookings: European airlines, restaurants, and hotels have experienced up to a 30% decline in direct booking traffic, with users complaining about complicated work witharounds.
- Frustration with Workarounds: Users are frustrated with the cumbersome workarounds required to access certain services.