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Google faces scrutiny as DuckDuckGo calls for fresh EU probes into compliance

Thursday November 21, 2024. 11:50 AM , from ComputerWorld
DuckDuckGo has urged the European Commission to open three investigations into Google’s compliance with the EU’s Digital Markets Act (DMA), alleging non-compliance with key obligations under the law. 

In a blog post, the privacy-focused search engine outlined Google’s obligations under the DMA, which include sharing anonymized click and query data, implementing choice screens, and allowing users to easily change default search settings.

“Unfortunately, Google is using a malicious compliance playbook to undercut the DMA,” DuckDuckGo said. “Google has selectively adhered to certain obligations – often due to pressure from the Commission – while totally disregarding others or making farcical compliance proposals that could never have the desired impact.” 

DuckDuckGo argued that the obligations were designed to counter Google’s market dominance, noting parallels with findings in the United States v. Google case. The US judge in that case ruled that Google’s scale and distribution advantages were illegal, citing that 70% of search queries flow through access points preloaded with Google.

This creates what the judge called a “perpetual scale and quality deficit” for competitors, locking in Google’s dominance. 

The US Department of Justice (DoJ) has now escalated its antitrust efforts against Google, seeking a landmark ruling that could reshape the technology sector. 

DuckDuckGo’s call for additional probes comes as Google faces growing competition from emerging players such as OpenAI and Perplexity AI.

Compliance enforcement challenges

DuckDuckGo’s allegations against Google shed light on the ongoing challenges in enforcing fair competition within the digital ecosystem.

In its post, DuckDuckGo has even argued that DMA fails to adequately address Google’s scale advantage. While sharing click-and-query data is a crucial step, the company said it is not enough on its own to foster a competitive search engine market.

“The potential gaps in Google’s compliance with the DMA underscore the need for vigilant regulatory oversight,” said Prabhu Ram, VP of the industry research group at Cybermedia Research. “If substantiated, these allegations could significantly impact competition dynamics in Europe.”

Sanchit Vir Gogia, chief analyst and CEO at Greyhound Research, added that it’s important to note that DMA is wide-ranging, complex, and open to interpretation.

“Hence, whether or not Google is compliant is still up for discussion,” Gogia said. “The fact is that Google has made select changes to encourage fair competition. Still, given the open-to-interpretation nature of this act, there is room for discussion (read allegation) from the competition.”

Moreover, as new competitors like Perplexity AI and OpenAI gain traction in the search market, any regulatory action against Google must account for the growing challenge these vendors pose to its dominance, Gogia added.

What Google may do

This could get more difficult as analysts suggest Google may have strategies to navigate the issue, such as licensing anonymized search data that excludes a significant portion of queries.

While this approach could technically comply with legal requirements, it risks undermining the intent of the rules.

“This, in turn, raises concerns about genuine user choice in an environment favoring incumbents,” Ram pointed out. “How EU regulators address these issues will be pivotal, shaping the behavior of other gatekeepers and setting important precedents for global competition policies.”

In its post, DuckDuckGo has called on regulators worldwide to examine the implementation of DMA, warning that Google has exploited loopholes to circumvent the rules. The company urged authorities to take measures to ensure Google cannot continue to obstruct progress and fair competition.
https://www.computerworld.com/article/3610220/google-faces-scrutiny-as-duckduckgo-calls-for-fresh-eu...

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