## The Digital Markets Act: A Call for Re-evaluation
The Digital Markets Act (DMA), intended to foster competition in digital markets, is facing scrutiny for unintended consequences impacting European businesses and consumers. Google argues the current implementation requires adjustments to better achieve its stated goals.
A key concern centers on the DMA’s effect on the European tourism industry. the Act mandates changes to Google Search, preventing the direct display of links to airline and hotel websites, instead prioritizing links to intermediary sites that charge for inclusion. This shift is demonstrably raising prices for consumers and reducing traffic to businesses. Reports indicate a plummet of up to 30% in free, direct booking traffic from Google Search for key parts of the European tourism sector. A recent study estimates potential revenue losses of up to €114 billion for European businesses across various sectors due to the DMA’s impact.
Google expresses concern that these changes prioritize the commercial interests of a limited number of intermediary websites over the ability of businesses to connect directly with customers.
Beyond Search, the DMA is reportedly hindering efforts to protect Android users. The Act necessitates the removal of legitimate safeguards against scams and malicious links. Android’s open nature – allowing users to download apps from sources beyond official app stores (“sideloading”) and featuring multiple pre-installed app stores - has fostered innovation and choice, but is now considered threatened by these requirements.
A notable challenge remains in balancing innovation with regulatory compliance. Google states that regulatory burdens and uncertainty are delaying the launch of new products, including its latest AI features, in Europe by as much as a year compared to global release. This delay impacts both European consumers and businesses.While Google has proactively implemented changes to comply with the DMA, including offering data portability tools, considerable uncertainty persists. This is exacerbated by overlapping rules from national regulators and ongoing cases in national courts, perhaps undermining the DMA’s aim for harmonized regulations across the EU.
Google is calling on the European commission to ensure future enforcement is user-driven, fact-based, consistent, and clear, with a primary focus on benefiting European businesses and consumers through high-quality products and services. The company argues that DMA compliance should *enhance* digital markets,not compromise security,integrity,quality,or usefulness.
