BUSINESS NEWS EC launches investigation into Google travel search under new Digital Markets Act
Travel tech firms welcome action against Google
The association representing travel technology companies in Brussels, EU Travel Tech, welcomed the investigation into Google over ‘self-preferencing’ in search results. EU Travel Tech noted the relevant
article of the DMA “is designed to ensure gatekeepers do not favour
their own services over those of competitors” and that Google’s own intermediation services in travel which offer “comparison of hotels, flights, trains, vacation rentals and more, directly compete with services from companies including EU Travel Tech members”. The association, whose
members include GDSs Amadeus and Travelport and online agencies
Booking.com, Expedia, Airbnb, eDreams Odigeo and Skyscanner, sent an open letter to European commissioners Vestager and Breton
on March 7 demanding action against Google. It argued: “Google continues
to favour its own services” and urged the EC “to ensure the DMA is enforced”. Separately, eDreams Odigeo
denounced “Google’s long-standing self-preferencing”, labelling it “a clear violation of the DMA” and called for “strong enforcement”. Guillaume Teissonniere,
eDreams Odigeo general counsel, said: “It is evident Google has chosen a path of non-compliance.”
EC probes tech giants for ‘search’ non-compliance
Ian Taylor
The European Commission has launched major investigations into Google parent Alphabet and fellow ‘gatekeeper’ platforms Apple and Meta over non-compliance with the Digital Markets Act (DMA). The EC opened five proceedings
last week, the first under the DMA since the Act came into force on March 7. Google is the subject of two of these, one into whether its search results preference the company’s own services, including Google Flights and Google Hotels, over rivals’ – a practice known as ‘self-preferencing’ and in breach of the DMA. The six technology giants to
which the Act applies have had since last September, when they were formally designated ‘gatekeepers’, to comply with its requirements and were ordered to demonstrate compliance by the March start date. The EC noted: “Alphabet’s
measures to comply with the DMA may not ensure third-party services featuring on Google’s search
travelweekly.co.uk
results page are treated in a fair and non-discriminatory manner in comparison with Alphabet’s services.” Margrethe Vestager, commission
vice-president in charge of competition policy, said: “We suspect the suggested solutions put forward do not fully comply.” She said the decision to open
non-compliance investigations “show DMA compliance is something we take very seriously” and suggested there would be more investigations to come “as we unearth other problems”. Vestager warned: “We will use all
available tools should any gatekeeper try to circumvent or undermine the obligations of the DMA.” The launch of the investigations
came with an order to the companies “to retain certain documents [to] allow us to access relevant evidence in current and future investigations”, with Vestager noting the ‘retention orders’ “extend beyond the investigations we’re opening today”. Thierry Breton, commissioner
for the internal market, described the prohibition of self-preferencing as “a
Thierry Breton
pillar of the DMA” noting: “When organising and prioritising information online, gatekeepers should not use their power to unduly promote their own services. This does not seem to be the case when it comes to how results are presented on Google Search. We are concerned that . . . Google Flights and Google Hotels still benefit from preferential treatment.” In response, Google pledged “to
defend our approach”. Director of competition Oliver Bethell said: “We have made significant changes to the way our services operate in Europe to comply with the DMA.”
‘Gatekeepers’ accused of breaching DMA
Margrethe Vestager
The Digital Markets Act was designed to rein in the power of the world’s largest tech companies. Commission vice-president
for competition policy Margrethe Vestager explained that work on the DMA began in 2019 in light of “our antitrust enforcement experience” and “the temptation to flout the law” in the tech sector. The Act was approved in March 2022. The EC designated six
companies – Alphabet, Amazon, Apple, Bytedance (TikTok), Meta and Microsoft – as ‘gatekeepers’, covering 22 ‘core platform services’, in September last year. Gatekeepers are defined by
“a strong economic position, significant impact on the internal market and [being] active in multiple EU countries” as well as “a strong intermediation position, [linking] a large user base to a large number of businesses”, and “an entrenched position in the market”. The companies were obliged to
submit DMA compliance reports by March 7. Google is accused of non-
compliance with Article 6 (5) of the DMA which states: “The gatekeeper shall not treat more favourably, in ranking and related indexing, services and products offered by the gatekeeper itself than similar services or products of a third party.”
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