Google previously announced a series of changes for users in the European Union (EU) to comply with the Digital Markets Act (DMA), which aims to make the digital market more competitive. The changes, which must be implemented within four months of the decision, affect users and app developers using Google services, including search, the Google Chrome browser, and the Google Play app store.
Key Developments:
- Google has started implementing a "choice screen" to facilitate switching search engines and browsers and eliminate some features, such as Google Flights.
- Additional consent will be required to share data across Google products to link services. Future updates will facilitate downloading third-party apps and app stores, access alternative billing options outside of Google Play, and offer developers more options to promote external offerings.
Implications for EU Users:
- Enhanced User Control: Users will find switching between search engines and browsers easier.
- Data Sharing Consents: Increased transparency and control over sharing data across Google products.
- Third-Party App Access: Easier access to third-party apps and billing options, promoting a more competitive environment.
Impact on the Market:
According to Investopedia, the Bank of America, analysts suggested that changes made by big tech companies to comply with the DMA could benefit companies like Bumble, Match Group, Pinterest, and Snap. They highlighted that the changes to Google Chrome could be advantageous for ad tech companies such as DV and IAS while posing challenges for eCommerce and media companies that rely on user targeting, including Meta, Snap, and Wayfair.
Concerns from Travel Companies:
Several travel companies have expressed concerns that Google's changes might reinforce its dominance rather than make the market more competitive. Yelp and EU Travel Tech, representing members like Airbnb, Expedia, and Booking, have urged Google to end the preferential treatment of its services over competitors.
Financial Impact:
Shares of Google parent Alphabet were down 1.4% following the announcement, trading at $132.43. Despite the dip, the stock has gained more than 38% over the past year, as previously reported.
Moving Forward:
With these changes, Google aims to comply with the EU's DMA and foster a more competitive digital market. The success of these measures will depend on their adoption and implementation across various services and platforms.
For more details on the DMA and its implications, visit the Digital Services Act fact page.
