Report from Reuters
In Brief – Google used a European Commission-hosted workshop on July 7–8 to outline two more proposals intended to address complaints over how it treats “vertical” search competitors, such as those specializing in hotels, airfares, or local services, aiming to resolve the Commission’s preliminary determination that the company was violating the Digital Markets Act (DMA). However, their latest offers failed to assuage concerns of the vertical businesses who argue they fall short of creating a level playing field. A Google representative described the talks as continuing to pit vertical platforms against “direct suppliers” like hotels and airlines, saying, “competing interests continue to pull us in different directions,” and “we now need to bring this debate to an end”. The DMA prohibits gatekeepers like Google search from self-preferencing. After months of Commission-led talks involving Google, vertical search companies, and large businesses who want high rankings in Google search, the regulator ruled in March that Google’s DMA plan did not comply. Google continues to reiterate that it disagrees with the Commission’s preliminary findings but that they want to find a workable solution.
Context – The Commission is deep into DMA challenges of Apple, Meta, and Google. The Apple fight boils down to the fees imposed on app developers. The Commission has agreed with developers who, shockingly, are united in wanting to pay less. Meta is being ordered to offer a free version of their top apps that also do not use targeted ads, a bugaboo of privacy advocates. Meta argues they are the only company facing this demand and that being forced to use less-effective non-targeted ads hurts small advertisers and limits their own ability to earn revenue. The Commission’s Google investigation has gone slower because the “fairness” of search is a morass plaguing the internet for decades. Everyone wants a top spot and change means winners and losers. Google has long argued that they refine search to improve user experience. Will regulators do a better job? Or judges? And the fight over Google integrating AI into search results is heating up fast.