Alphabet’s Google is set to push back against the European Union’s sweeping tech regulations, warning that the Digital Markets Act (DMA) is stifling innovation to the detriment of both users and businesses in Europe. The U.S. tech giant will voice its concerns to EU antitrust regulators and critics, claiming that the landmark rules aimed at curbing Big Tech’s dominance may ultimately backfire by hampering competitiveness and technological advancement.
Under the DMA, companies deemed “gatekeepers” are subject to strict obligations to prevent abuse of market power. Google, one of the key targets of the legislation, is facing mounting scrutiny over allegations that it unfairly prioritizes its own services such as Google Shopping, Google Hotels, and Google Flights in search results, giving them a competitive edge over rival platforms.
These charges, if upheld, could lead to fines amounting to as much as 10% of Google’s global annual revenue, a substantial financial risk for the company.
In response, Google will on Tuesday call for clearer guidance from EU regulators, arguing that the lack of specific direction creates uncertainty for companies striving to comply with the complex regulations. The company will also challenge its critics to present concrete evidence outlining the costs and benefits of the DMA, asserting that more data is needed to fairly assess the impact of the new framework.
The dispute highlights the growing tension between U.S. tech giants and European lawmakers, who are seeking to assert greater control over digital markets. While the EU maintains that the DMA is essential for ensuring fair competition and protecting consumers, Google insists that some of the restrictions could unintentionally harm the very users the rules aim to protect.
As the EU’s enforcement of the DMA intensifies, the outcome of this high-stakes standoff could reshape the digital landscape in Europe setting a precedent for how global tech firms operate under stringent regulatory regimes.
