Alphabet makes changes as Digital Markets Act comes into force

Google parent company only one of a series of Big Tech companies being forced into line

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Image: Dotdash Meredith

Google parent company Alphabet is making changes affecting users in the European Union (EU) to comply with new laws designed to make the digital market more competitive.

The changes, made with an eye to compliance with the Digital Markets Act (DMA), came into force today and 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.

Under the DMA the EU designated Google, Apple, Amazon, Meta, and Microsoft, among others, as ‘gatekeepers’ that must comply with the European Commission’s requirements.

Bank of America analysts noted that “potential beneficiaries” of changes made by gatekeepers to comply with the DMA could include Bumble, Match Group, Pinterest, and 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 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, Expedia, TripAdvisor, and Booking, also raised concerns. EU Travel Tech said that the organisation “urge[s] Google to put an end to the preferential treatment of its own services against those of its competitors”.

Shares in Alphabet gained more than 38% in the past year, how DMA compliance will affect its ability to do business effectively remains to be seen.

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Read More: Digital Markets Act DMA EU European Union Google