Google Defends Its Compliance with EU's Digital Markets Act

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Alphabet Inc's Google (GOOGL, Financial) is set to address criticisms regarding its adaptation to the EU's Digital Markets Act (DMA) mandates during a speech by Oliver Bethell, who leads Google's EMEA competition team. Bethell plans to explain the intricate decisions the company has had to make to comply with the DMA while balancing various interests.

The DMA, effective from March 7, allows users to uninstall any pre-installed Google software or apps and requires Google to obtain user consent for data usage across its services or for personalized advertising. It also prohibits Google from prioritizing its products or services over those of competitors on its platform, aiming to curb Big Tech's dominance, level the playing field for smaller entities, and enhance user choices by designating companies like Google as gatekeepers.

Despite Google's efforts, competitors from different sectors have voiced concerns that Google's adjustments fall short of DMA's requirements, with some noting a decline in search traffic quality. Bethell's speech highlights the challenges in modifying Google's search engine to meet the DMA's provisions without compromising user privacy, security, and search quality. He emphasizes that some requested changes by vertical search engines exceed the DMA's scope and could deteriorate the search experience for European users and businesses, which is not the intention of the DMA.

Bethell also comments on other companies identified as gatekeepers under the DMA, urging them to engage with the Commission and heed third-party feedback as Google has. He reminds that violations of the DMA could lead to fines up to 10% of a company's annual global turnover.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.