Leading airlines, hotels, and retailers are voicing their apprehensions about being sidelined by Google’s search modifications under new European Union tech regulations. Lobbying groups representing these industries have called on EU tech regulators to consider their perspectives, not just those of large intermediaries, as Google adapts to comply with the Digital Markets Act (DMA).
The Airlines for Europe group, which includes members such as Air France KLM and British Airways owner IAG, along with the hotel group Hotrec, the European Hotel Forum, EuroCommerce, Ecommerce Europe, and Independent Retail Europe, initially raised concerns in March about the potential impact of the DMA. The act, which imposes a series of dos and don’ts on Google and five other tech giants, aims to enhance user choice and foster competitive opportunities for rivals. However, these groups fear that the changes may negatively affect their revenue streams.
Read more: Why This Google Antitrust Lawsuit Has Promise
In a joint letter dated May 22 to EU antitrust chief Margrethe Vestager and EU industry chief Thierry Breton, the groups articulated their growing unease. “Our industries have serious concerns that currently considered solutions and requirements for implementing the DMA could further increase discrimination,” they wrote.
The letter emphasized that initial observations suggest these changes might significantly reduce direct sales revenues for companies by favoring powerful online intermediaries, who would receive preferential treatment. This, they argue, would disproportionately benefit large intermediaries and aggregators at the expense of airlines, hotels, merchants, and restaurants.
The European Commission is currently investigating Google for potential breaches of the DMA. However, the Commission has not yet responded to requests for comments on the matter.
In a March blog post, Google acknowledged that changes to its search results might drive more traffic to large intermediaries and aggregators, potentially at the expense of direct sales for hotels, airlines, merchants, and restaurants. Google has not provided additional comments following the recent letter from the industry groups.
The letter also highlighted concerns that the ongoing investigation into non-compliance with the DMA seems to focus solely on the fair treatment of third-party services, overlooking European businesses that also offer services on Google. The lobbying groups urged EU regulators to ensure a more balanced approach that considers the interests of all stakeholders involved.
Source: Reuters
Featured News
Mexico Moves Forward with Reform to Eliminate Key Regulators, Including Competition Watchdog
Aug 23, 2024 by
CPI
DOJ Sues RealPage for Alleged Rent-Fixing Scheme Using AI Software
Aug 23, 2024 by
CPI
Advance Auto Parts to Offload Worldpac for $1.5 Billion
Aug 22, 2024 by
CPI
Bronfman Ups Ante to $6 Billion in Paramount Battle, Skydance Deal at Risk
Aug 22, 2024 by
CPI
Google and California Strike Historic Deal to Fund Newsrooms Amid Controversy
Aug 22, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – State Attorneys General
Aug 22, 2024 by
CPI
CPI Talks… …With Attorney General Phil Weiser
Aug 22, 2024 by
CPI
The Bipartisan Miracle of State Antitrust Enforcement
Aug 22, 2024 by
Gwendolyn J. Lindsay Cooley
Recent Developments in State Antitrust Enforcement: Agriculture and Food Markets
Aug 22, 2024 by
Elizabeth R. Odette
State Attorneys General: Stewards of Consumer Health and Welfare
Aug 22, 2024 by
Brooke Howlett Lovrovich