The EU's proposed Digital Marketplace Law has the potential to become law, and Google is now reportedly stepping up lobbying to limit its impact on all big tech companies, including Apple and Amazon. Back in November 2020, big tech companies including Apple and Google were invited to talks on the Digital Marketplace Act (DMA). However, these talks are not considered serious, as the EU has largely finalized its proposal in advance.
Since then, progress on the DMA has slowed, prompting Margrethe Vestager, head of the EU's antitrust body, to urge lawmakers to speed up. Still, the DMA's advice on curbing the anti-competitive growth of companies like Apple and Google appears to be becoming law. According to the Financial Times, Google has begun what it calls a final attempt to change the DMA.
A Google insider told the publication: "Top executives in California have always known about DMA, but they're only waking up now." Diplomats and politicians report that they are now seeing what they call a marked escalation in lobbying. All of this seems to focus on the message that limits Google will harm small businesses in some unspecified way. "
"Please don't make my business harder," a letter from the Council on Connected Business (CCC) reads. The lobbying group CCC lists Google and Amazon as one of its partners.
Similarly, IAB European groups, including Google, have reportedly also reportedly opposed the targeted advertising ban included in the DMA. The current DMA debate, led by Andreas Schwab, a member of the European Parliament, said Google's efforts were "a bit too late" to have a significant impact.
One reason Google may now step up its efforts is a change in Attitudes in Germany. According to the Financial Times, Germany's competition watchdog officially classifies Google as the "gatekeeper" of the walled garden, so it is subject to stricter local supervision.
"We think people in Europe should be able to enjoy the best google can offer," a Google spokesperson told the publication. "It's clear that some of the recommendations in the DMA and DSA [Digital Services Act] directly affect us and will have an impact on our product innovation in Europe. We care about how to strike a balance, and we know our users and customers care too," the spokesperson continued. "Like many others, we have had open and constructive engagement with policymakers throughout the legislative process to express our views."
Apple has not commented on the current state of the DMA debate, but has previously opposed the proposal.