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Landmark EU tech rules holding back innovation, Google says

Published by Global Banking & Finance Review

Posted on July 1, 2025

2 min read

· Last updated: January 23, 2026

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Landmark EU tech rules holding back innovation, Google says
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By Foo Yun Chee BRUSSELS (Reuters) -Alphabet's Google will on Tuesday warn EU antitrust regulators and its critics that landmark European Union rules aimed at reining in Big Tech are hampering

Landmark EU tech rules holding back innovation, Google

By Foo Yun Chee

BRUSSELS (Reuters) -Alphabet's Google will on Tuesday warn EU antitrust regulators and its critics that landmark European Union rules aimed at reining in Big Tech are hampering innovation to the detriment of European users and businesses.

The U.S. tech giant will also urge regulators to give more detailed guidance to help it comply with the rules, and ask its critics to provide evidence of costs and benefits to prove their case.

Google is under pressure to address charges under the EU's Digital Markets Act that it favours its own services such as Google Shopping, Google Hotels and Google Flights over rivals. The charges may result in fines of as much as 10% of its global annual revenue.

Earlier this month, Google proposed more changes to its search results to better showcase rival products, but critics say these still do not ensure a level playing field.

"We remain genuinely concerned about real world consequences of the DMA, which are leading to worse online products and experiences for Europeans," Google's lawyer Clare Kelly will tell a workshop organised by the European Commission to give Google critics the opportunity to seek clarifications.

She will say changes implemented by Google to date after discussions with the Commission and its critics have resulted in European users paying more for travel tickets as they cannot directly access airline sites, according to a copy of her speech seen by Reuters.

Kelly will also say European airlines, hotels and restaurants have reported up to a 30% loss in direct booking traffic, while users have complained about clunky workarounds.

Google's other lawyer, Oliver Bethell, will ask regulators to spell out in detail what the company needs to do, and critics to come up with hard evidence.

"If we can understand precisely what compliance looks like, not just in theory, but taking account of on the ground experience, we can launch compliant services quickly and confidently across the EEA," he will say.

The EEA is the 27 EU countries, Iceland, Liechtenstein and Norway.

"We need help identifying the areas where we should focus. That means bringing real evidence of costs and benefits that we can take account of with the Commission," Bethell said.

The day-long workshop starts at 0700 GMT.

(Reporting by Foo Yun CheeEditing by Mark Potter)

Key Takeaways

  • Google claims EU tech rules hinder innovation.
  • The Digital Markets Act may lead to fines for Google.
  • Google seeks clearer guidance from EU regulators.
  • Critics demand evidence of costs and benefits.
  • European users face higher costs due to rule changes.

Frequently Asked Questions

What does Google claim about the EU's Digital Markets Act?
Google claims that the Digital Markets Act is leading to worse online products and experiences for Europeans, resulting in higher costs for users.
What evidence does Google request from its critics?
Google is asking its critics to provide hard evidence of the costs and benefits associated with the regulations to support their claims.
How have European businesses been affected by Google's compliance changes?
European airlines, hotels, and restaurants have reported up to a 30% loss in direct booking traffic due to the changes implemented by Google.
What does Google need from regulators to ensure compliance?
Google is urging regulators to provide detailed guidance on compliance requirements, emphasizing the need for clarity based on real-world experiences.
What is the main concern expressed by Google's legal representatives?
Google's legal representatives express concern that the current regulations are hampering innovation and negatively impacting the online experience for users in Europe.

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