Google intensifies lobbying efforts to limit impact of EU tech regulation
The company argues that restrictions placed on Google would be detrimental to small businesses
Google has increased its EU lobbying efforts in a last ditch effort to mitigate the impact of the proposed Digital Markets Act (DMA), which is likely to become law in about a year.
Several diplomats and lawmakers in Brussels have seen a significant increase in Google lobbying in recent weeks, in the form of emails, advertising and targeted social media posts, according to the Financial Times.
All of it appears to be aimed at conveying the message that restricting Google would be detrimental to small businesses.
The campaign includes not just Google's direct lobbying, but also efforts from many trade organisations funded by the search giant.
Kim van Sparrentak, a Dutch MEP, told the FT that she had been invited to meet with Google to discuss her concerns at a time convenient to her, as well as to attend a Google event on the benefits of digital marketing to small businesses.
She was also lobbied by the Connected Commerce Council (CCC), whose members include Amazon and Google.
"Please don't make it harder for my business," states a part of the letter sent by CCC and signed by several small business owners.
Similarly, IAB Europe, a group which includes Google, is reportedly opposing the DMA's proposed ban on targeted advertising. The group's campaign has appeared on Twitter and in the trade press.
"I'm being targeted with a nearly unrecognisable ad aimed at EU officials promoting false info and solely referring to studies of IAB," Alderik Oosthoek, a policy adviser at the European Parliament, wrote on Twitter.
An ongoing battle against regulation
The European Commission introduced two legislative proposals in 2020 as part of a major attempt to overhaul the digital space and regulate big technology firms.
The proposals - the Digital Services Act (DSA) and Digital Markets Act (DMA) - will apply on all digital services, including online marketplaces, social media and other online platforms operating in the EU.
The rules' main aim is to 'better protect consumers and their fundamental rights online', according to the European Commission, which hopes the regulations will create a level playing field and to lead to 'fairer and more open' digital markets in the region.
The DMA is expected to come into force at the beginning of 2023, after passing through the EU Parliament.
Google executives are allegedly worried that DMA guidelines will prohibit the company from self-preferencing (favouring its own products and services) businesses it operates in its search engine results.
In November 2020, Google and other major tech companies were invited to take part in discussions about the DMA with EU lawmakers. Those discussions, however, were not taken seriously as the EU had already finalised its proposals.
Lawmakers in Brussels and around the world have become increasingly concerned about the growing powers of some big tech firms. They believe these companies use their power to stifle market competition.
European legislators now want to force tech giants to change their business practices, without the need to conduct lengthy investigations or even to prove they have violated guidelines.
In June last year, Google agreed to pay a €220 million (about £190 million) fine and make changes to some of its ad services as part of an antitrust settlement with France's antitrust watchdog. The French Competition Authority (FCA) found that Google had abused its power in the complex online advertising market, putting other firms at a disadvantage.
Last week another French authority, the CNIL, fined Google and Facebook a combined €210 million (about £176 million) for making it too difficult for users to reject cookie tracking.
Germany's antitrust watchdog also put Google under closer antitrust scrutiny earlier this month by designating it a company of 'paramount significance', through new powers it has gained under an amendment of the German Competition Act.