Google Provides Feedback on the Digital Markets Act ⇥ blog.google

Something I missed in posting about Apple’s critical appraisal of the Digital Markets Act is its timing. Why now? Well, it turns out the European Commission sought feedback beginning in July, and with a deadline of just before midnight on 24 September. That is why it published that statement, and why Google did the same.

Oliver Bethell, Google’s “senior director, competition”, a job title which implies a day spent chuckling to oneself:

Consider the DMA’s impact on Europe’s tourism industry. The DMA requires Google Search to stop showing useful travel results that link directly to airline and hotel sites, and instead show links to intermediary websites that charge for inclusion. This raises prices for consumers, reduces traffic to businesses, and makes it harder for people to quickly find reliable, direct booking information.

Key parts of the European tourism industry have already seen free, direct booking traffic from Google Search plummet by up to 30%. A recent study on the economic impact of the DMA estimates that European businesses across sectors could face revenue losses of up to €114 billion.

The study in question, though published by Copenhagen Business School, was funded by the Computer & Communications Industry Association, a tech industry lobbying firm funded in part by Google. I do not have the background to assess if the paper’s conclusions are well-founded, but it should be noted the low-end of the paper’s estimates was a loss of €8.5 billion, or just 0.05% of total industry revenue (page 45). The same lobbyists also funded a survey (PDF) conducted online by Nextrade Group.

Like Apple, Google clearly wants this law to go away. It might say it “remain[s] committed to complying with the DMA” and that it “appreciate[s] the Commission’s consistent openness to regulatory dialogue”, but nobody is fooled. To its credit, Google posted the full response (PDF) it sent the Commission which, though clearly defensive, has less of a public relations sheen than either of the company’s press releases.