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Introduction: Big Tech’s Regulatory Reckoning in Europe
In the latest chapter of the European
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Google is proposing a new structure for its search results in the EU to address accusations of anti-competitive behavior. According to Reuters, the tech giant’s proposal comes three months after the European Commission formally charged it with violating the DMA—a new law targeting monopolistic practices by large digital platforms.
In response, Google has suggested a solution involving the inclusion of a new section at the top of its search results page, explicitly reserved for rival vertical search services (VSS). This box, selected through what Google calls “objective and non-discriminatory criteria,” would match the design and format of Google’s own products and feature three direct links chosen by the competitor itself. Other specialized services would be ranked below that section.
Despite this apparent concession, Google has not admitted fault. In its communication to rival companies, the company made it clear that while it disagrees with the Commission’s assessment, it is offering this solution “without prejudice” as a way to resolve the dispute.
A key meeting to discuss the proposal with rival firms and the Commission is set for July 8. However, unnamed sources from competing firms told Reuters that they view the proposed changes as inadequate, suggesting that the plan still fails to create a level playing field.
The case is part of the EU’s broader enforcement of the DMA, a legal framework that aims to curtail the influence of “gatekeeper” platforms and ensure fair competition in digital markets. This new regulatory push represents a substantial threat to Google’s business model in Europe, especially if the company fails to comply and is fined or subjected to deeper structural reforms.
What Undercode Say:
Google’s latest offer to the European Commission reads like a tactical maneuver designed more to satisfy legal optics than to truly disrupt its dominant positioning in search. On paper, allowing a rival to place links in a premium slot might seem like a step toward fairness. But dig deeper and you find a carefully curated mechanism that keeps Google in control of the larger ecosystem.
First, the notion of “objective and non-discriminatory criteria” sounds great, but who sets those criteria? If Google does, then the risk is that rivals are filtered through a Google lens, which is already optimized for Google’s strategic interests. There’s a built-in paradox in letting a dominant player determine the playing field’s fairness.
Second, offering three direct links in a limited area at the top, while keeping Google’s own services seamlessly integrated and visually dominant elsewhere, may not shift user behavior significantly. Users are conditioned to Google’s ecosystem. Just one box—even if it’s at the top—doesn’t undo years of behavioral design and brand loyalty.
Third, this move can be interpreted as an attempt to avoid heavier regulatory hammers, such as unbundling services or financial penalties that would genuinely hurt. By appearing conciliatory now, Google can delay enforcement and dilute regulatory urgency.
From a broader perspective, the EU’s Digital Markets Act is trying to force a rearchitecture of the digital economy—pushing platforms to play fair rather than dominate by design. But the challenge is enormous. Big Tech firms have immense technical leverage, capital reserves, and lobbying power. They can afford to play the long game, tweaking surface features while maintaining deeper control of the funnel.
If competitors truly want parity, regulators might have to go beyond UI tweaks and into the realm of data access equality, API neutrality, and maybe even service unbundling. Anything less, and the web’s supposed “open market” will remain skewed in favor of the incumbents.
🔍 Fact Checker Results
✅ The European Commission did formally charge Google under the Digital Markets Act.
✅ Google’s proposal includes a box at the top of the results for rival vertical services.
❌ The current proposal is not yet approved or finalized—critics argue it is insufficient.
📊 Prediction
If Google’s proposal remains largely unchanged and is approved, competitors may gain only minimal traction. Expect minimal user redirection from Google’s native services unless the EC enforces stricter integration standards. However, if the July 8 meeting results in significant regulatory pushback, Google might be forced to overhaul not just presentation, but also how data and traffic flow across its platform—marking a true turning point in EU tech governance.
References:
Reported By: timesofindia.indiatimes.com
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