Thursday, September 19, 2024

Google may fall short on EU digital competition rules on travel and hospitality

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Google’s efforts to fully comply with the Digital Markets Act (DMA) remains insufficient, travel and hospitality organisations attending two European Commission workshops this week, told Euractiv.

“Google is once again playing the system, by presenting solutions that are not only non-compliant but also largely unchanged, offering no meaningful improvements,” said Emmanuel Mounier, secretary general of EU Travel Tech, representing travel technology services.

His organisation along with others attended the European Commission-organised workshops, to asses the digital giant compliance with the Digital Markets Act (DMA), the EU’s competition regulation.

Several European companies related to travel and hospitality participated, discussing Google’s latest compliance solutions concerning trains and flights on Tuesday (10 September), and hospitality on Wednesday (11 September). The workshops were industry-specific sessions.

A non-compliance decision and subsequent fine by the Commission next year, however, should prompt the tech giant to reconsider its stance.

Google’s latest proposed solutions still face issues similar to those that led the Commission to open a formal investigation in March. The investigation focuses on whether the company engages in self-preferencing, allegedly prioritising its services over those provided by competitors in search results, potentially violating the DMA.

This practice could harm competition and limit consumer choice, which remains a key concern for regulators and the stakeholders attending the workshops.

Following other workshops taking place in March, Google was asked to revise its compliance solutions to address self-preferencing. The Commission, however, found the revisions failed to resolve concerns fully.

Their proposed changes did not sufficiently prevent the company from continuing to give undue preference to its own services, thus falling short of meeting the DMA’s requirement to ensure fair competition and open market access for rivals.

In March, the Commission announced opening non-compliance investigations under the DMA into Alphabet, Apple, and Meta.

“As part of the regular monitoring of compliance with the DMA, the Commission is reaching out and seeking feedback also from interested third parties,” a Commission spokesperson told Euractiv, adding that they will continue using various formats, including workshops, to gather feedback on Google’s parent company, Alphabet’s compliance.

Google did not respond to Euractiv’s request for comment on this story at the time of publication.

The workshops

EU Travel Tech was encouraged by the Commission’s efforts to outline what remains non-compliant in Google’s proposals during the workshops, the organisation’s Director of EU Affairs, Annalaura Gallo told Euractiv.

“Despite these challenges, we remain confident that the effective enforcement of the DMA will lead to increased consumer choice in the long run and foster a healthier internet ecosystem for all stakeholders,” said Gallo.

While the product was only recently presented, the focus was on providing feedback and fostering constructive dialogue for future discussions, Matej Zezlin, public affairs manager at HOTREC, the umbrella association of hotels, restaurants, cafés and similar establishments in Europe, told Euractiv.

Next steps

Zezlin said that he is optimistic about moving forward, even though there are still many unresolved questions. He added that the Commission will likely provide information, in the future on the next steps.

Google’s absence from the workshop left unanswered questions Zezlin anticipates their presence at future meetings. The feedback given was preliminary, with concrete actions expected later, likely involving Google’s input, he believed.

The Commission also considers the latest Google proposal still has non-compliance elements, and the company is expected to present a revised proposal, a person familiar with the matter told Euractiv, adding that by March 2025, the EU executive will be issuing its non-compliance decision and fines.

[Edited by Eliza Gkritsi/Rajnish Singh]

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