Comply Digital Markets Act, Google Undertakes Massive Transformation!
Google Office in San Francisco, USA (Special)
- Google, the search engine giant that has dominated the global market, will undergo a major overhaul to comply with the European Union's Digital Markets Act (DMA).
This change aims to give users more choices and create healthier competition in the digital world.
However, this move has also sparked concerns among entrepreneurs from various sectors such as aviation, hospitality and retail.
Impact of Change on the Business Sector
The changes planned by Google not only drew scrutiny from regulators, but also raised concerns among business people.
They worry that these adjustments will hurt their bottom line.
In a joint letter addressed to EU Antimonopoly Chief Margrethe Vestager and EU Industry Chief Thierry Breton on 22 May 2024, the entrepreneurs expressed their concerns.
They stated that the implementation of the DMA had the potential to increase discrimination and reduce their income.
"The industry has serious concerns that the current DMA implementation solutions and requirements will further increase discrimination," as reported by Reuters, Saturday (25/5/2024).
Entrepreneurs' Concerns
Entrepreneurs highlight the risk of declining revenues due to increased reliance on online intermediaries who are privileged in this new ecosystem.
They observed that these changes could drain direct sales revenues, as more profits would flow to online intermediaries.
“Preliminary observations suggest that this change risks severely depleting companies' direct sales revenues by giving online intermediaries more profits due to the preferential treatment they will receive,” the group wrote.
Google's response
Google itself responded to this with a blog post last March, stating that changes to search results would provide more traffic to intermediaries and large aggregators, while traffic for hotels, airlines, merchants and restaurants wouldreduce.
Until now, there has been no further comment from Google regarding this rule overhaul.
The Future of Digital Competition
The business group also expressed concern that non-compliance investigations focused only on fair and non-discriminatory treatment of third-party services, without recognizing the contribution of European businesses that also offer their services on Google.
“We are concerned that the non-compliance investigation refers only to the need to treat third-party services in a fair and non-discriminatory manner, without any recognition of European businesses that also offer their services on Google,” they said.
This major transformation of Google illustrates how dynamic the digital ecosystem is today, where new regulations can have a significant impact on various sectors.
While the DMA aims to create a fairer and more competitive market, the challenge remains for businesses to adapt and find new strategies to deal with this changing digital landscape.