Google Announces Changes for EU Users to Comply With the DMA

By
Naomi Buchanan
Naomi Buchanan
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Naomi Buchanan is a reporter at Investopedia breaking down news stories that impact investors.
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Published March 05, 2024
11:37 AM EST
The Google logo on one of the company's office buildings.

Artur Widak / NurPhoto / Getty Images

Key Takeaways

  • Google said it is making changes for users in the European Union (EU) to comply with new laws for big tech companies that are meant to make the digital market more competitive.
  • The changes will affect users and app developers using Google services including search, Google Chrome browser, and the Google Play app store, among other features.
  • Under the Digital Markets Act (DMA), the EU designated Google along with other tech giants as a "gatekeeper" that must comply with the DMA requirements by Wednesday.
  • Bank of America analysts said that Bumble, Match Group, Pinterest, and Snap could be beneficiaries of big tech companies' changes to comply with the DMA rules.
  • Some travel companies previously voiced concerns that changes may not remedy Google's preferential treatment of its services compared to competitors.

Alphabet's (GOOGL) Google said Tuesday it is making changes affecting users in the European Union (EU) to comply with new laws aimed at big tech companies to make the digital market more competitive.

The changes will affect search results, add a "choice screen" to make switching search engines and browsers easier, and eliminate some features like Google Flights. There will also be additional consents to share data across Google products to link services, the company said.

Updates will make it easier to download third-party apps and app stores as well, access alternative billing options outside of Google Play, and offer developers additional options to promote external offerings beyond the app.

Google has been rolling out changes to comply with the Digital Markets Act (DMA). Under the DMA, the EU named Google, Apple (AAPL), Amazon (AMZN), Meta (META), and Microsoft (MSFT), among others, as "gatekeepers" that must comply with the European Commission's requirements by Wednesday.

Bank of America analysts noted that "potential beneficiaries" of changes made by gatekeepers to comply with the DMA could include Bumble (BMBL), Match Group (MTCH), Pinterest (PINS), and Snap (SNAP).

The analysts said that "Google Chrome browser changes could be positive for ad tech companies such as DV and IAS, and headwinds eCommerce and media companies that rely on user targeting including Beyond, Meta, Snap, and Wayfair."

Ahead of Google's announcement of its latest changes, several travel companies had voiced concerns that Google's adjustments to comply with the DMA could reinforce its dominance rather than make the space more competitive.

Yelp (YELP) had said last week that Google's changes, which were first introduced in February, could "exacerbate the search giant’s self-preferencing."

EU Travel Tech, a group focused on promoting the interest of travel distributors to European policymakers and whose members include Airbnb (ABNB), Expedia (EXPE), TripAdvisor (TRIP), and Booking (BKNG), also raised concerns. EU Travel Tech said that the organization "urge[s] Google to put an end to the preferential treatment of its own services against those of its competitors."

Shares of Google parent Alphabet were 1.4% lower as of about 11:30 a.m. ET Tuesday at $132.43. The stock has gained more than 38% in the past year.

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Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Google. "Complying with the Digital Markets Act."

  2. Bank of America. "Internet/e-Commerce Catalysts 101: AI & cost cutting remain in focus in our 2024 Internet Catalyst Matrix."

  3. Yelp. “Google’s changes do not comply with Digital Markets Act.”

  4. Google. "New Search experiences in EEA: Rich results, aggregator units, and refinement chips."

  5. EU Travel Tech. "eu travel tech Joins Thousands of Organisations Calling on Gatekeepers to Ensure Full Compliance with the DMA Obligations by March 7th."

  6. EU Travel Tech. "Members."

  7. EU Travel Tech. "about us."

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