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Landmark EU tech rules holding back innovation, Google says

By Alimat Aliyeva

Alphabet’s Google is set to warn EU antitrust regulators and critics on Tuesday that the landmark European Union rules designed to rein in Big Tech are unintentionally stifling innovation, ultimately harming European users and businesses, Azernews reports, citing Korean media.

The U.S. tech giant plans to urge regulators to provide clearer, more detailed guidance to help ensure compliance with the rules. Google will also challenge its critics to back their claims with solid evidence demonstrating the costs and benefits of the regulations.

Google faces scrutiny under the EU’s Digital Markets Act (DMA), which accuses the company of favoring its own services — such as Google Shopping, Google Hotels, and Google Flights — over competitors. If found in violation, Google could face fines of up to 10% of its global annual revenue, which would amount to billions of dollars.

Earlier this month, Google proposed further changes to its search results to better highlight rival products. However, critics argue these changes still fall short of creating a truly level playing field for competitors.

“We remain genuinely concerned about the real-world consequences of the DMA, which are leading to worse online products and experiences for Europeans,” said Google’s lawyer Clare Kelly at a workshop organized by the European Commission. The event aims to give Google’s critics a platform to seek clarifications and discuss ongoing compliance issues.

According to a copy of Kelly’s speech reviewed by Reuters, Google’s previous adjustments have inadvertently led to higher prices for European consumers, particularly in travel bookings, as users can no longer access airline websites directly.

Kelly added that many European airlines, hotels, and restaurants have reported up to a 30% decline in direct booking traffic, while users have expressed frustration over complicated workarounds imposed by the new system.

Another Google lawyer, Oliver Bethell, emphasized the company’s desire for precise regulatory instructions. “If we can understand exactly what compliance looks like — not just in theory but based on real-world experience — we can roll out compliant services quickly and confidently across the entire European Economic Area (EEA),” he said.

The EEA comprises the 27 EU member states, plus Iceland, Liechtenstein, and Norway.

Bethell stressed the need for regulators and critics to present concrete evidence of the costs and benefits of the DMA to help Google and the European Commission find workable solutions. “We need help identifying the areas where we should focus. That means bringing real evidence of costs and benefits that we can take account of with the Commission,” he added.

The workshop is scheduled to begin at 7 p.m. GMT and is expected to be a critical forum for addressing the challenges of regulating Big Tech without sacrificing innovation.

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