Google plans to warn European Union regulators on Tuesday that the Digital Markets Act is hurting innovation and leading to worse online experiences for users and businesses in Europe.
The company will also ask regulators for more detailed guidance on how to comply with the law and call on critics to provide clear evidence of the costs and benefits of their complaints.
Google is facing charges under the Digital Markets Act for allegedly favoring its own services, including Google Shopping, Google Hotels, and Google Flights, over those of competitors. If confirmed, the violations could lead to fines of up to 10% of its global annual revenue.
Earlier this month, Google proposed changes to its search results to better display rival services, but critics said the new layout still does not create fair competition.
At a European Commission workshop on Tuesday, Google lawyer Clare Kelly will say that changes made so far have already caused problems. According to her prepared remarks, European users now pay more for travel because they cannot easily access airline websites, and some businesses report losing direct traffic.
Kelly will also say that airlines, hotels, and restaurants in Europe have seen up to a 30% drop in direct bookings. Users have also complained about more difficult search experiences due to recent adjustments.
Another Google lawyer, Oliver Bethell, will ask regulators to clearly define what the company must do to comply. He will say that knowing exactly what is expected would allow Google to launch updated services more quickly and confidently across the European Economic Area.
Bethell will also say that critics need to bring solid evidence of the real-world effects of Google’s services and the rules now in place so that Google and the Commission can better evaluate any proposed changes.
