Google has little love for the planned European Digital Markets Act and is now trying to influence the regulations through busy lobbying.
During this year, the European Parliament will vote in principle on the Digital Markets Act (DMA). A proposal for that regulation has been on the table since 2021, and the intention is to turn it into law by 2023.
Gatekeeper
The DMA is an antitrust law that specifically targets large Internet companies. The rules target so-called gatekeepers. These are organizations that, because of their power, have an impact on the competitive position of other organizations. Think of Google with Android and its search engine, or Apple with its App Store. Germany, meanwhile, has officially labeled Google as such a gatekeeper.
For example, Europe wants to make it harder for tech giants to promote their own services (as Google does through search results). Further, the rules target targeted ads. These will not be banned, but should become significantly more transparent. In extreme cases, the DMA can be used to break up monopolies.
Lobbying campaign
Not surprisingly, Google is no fan of the DMA. The company now seems to have woken up and is launching an intense lobbying campaign. The goal is to block the legislation or at least limit its scope. This is at odds with the ambition of other interest groups. Germany , for example, thinks the DMA does not go far enough.
Politicians are invited to interviews and shown targeted ads. The latter immediately backfires, with one politician citing the disguised targeted ad as an example of a good reason of why the DMA is needed.
Too late
Google’s lobbying efforts are coming too late. So says German MEP Andreas Schwab to SiliconAngle. “I have the feeling that Google is concerned, and rightly so.” For its part, Google talks about the need for a proper balance and says it wants to serve consumers as well as possible. It says it wants to talk constructively with policymakers.
It will be some time before the DMA takes its final form, but presumably there won’t be too much tinkering with the lines of the proposal anymore. If all goes smoothly, the rules could go into effect as early as early 2023.