Google Faces Scrutiny As DuckDuckGo Calls For Fresh EU Probes Into Compliance

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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. 

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.

ComputerWorld.com

Additional comments by Greyhound Research analyst:

First, it’s important to note that the Digital Markets Act is wide-ranging, complex, and open to interpretation. Hence, whether or not Google is compliant is still up for discussion. 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. The wide-ranging nature of Google’s business, which spans product lines, makes this case more curious and not-so-straightforward. So, for many, Google naturally becomes the vendor of choice, given the ease of use, which may not necessarily be forced onto the user.

Second, search as a segment is evolving relatively quickly, thanks to the sudden rise of GenAI in the past 12 months. New vendors, like Perplexity and now OpenAI, are becoming mainstream competition for Google Search due to their solid value proposition. So, any action that must be taken against Google needs to keep in mind the rise of new vendors and their challenge to Google’s market dominance. Of course, this is yet to be reflected in market share, but the change in consumer choice is palpable.

Third, the digital marketing fraternity has long weighed in on this topic, and there are active efforts to spend money with other platforms instead of Google alone. Of course, the choices are still limited, and that’s partly Google’s own doing, given the predatory nature of its business practices. DuckDuckGo’s assertions are based on this premise. 

Fourth, it’s also critical to note that Google search products have always been market-leading in many ways, which is why it has become the preferred search engine for most. So, compliance bodies must take a multi-tangential approach and cannot simply base actions on competitive allegations. It is worth noting that data sharing must also be done within reasonable boundaries that do not compromise user safety and privacy. 

Fifth, digital advertising has gone beyond search, and the fraternity is increasingly banking on newer trends like GenAI-based search, social media based search and commerce, retail and e-commerce media networks, new-age fintech, aggregator apps and many more such avenues when deciding focus, spend, and manhours.

For a competition primarily focused on search alone, it’s critical to note the change in consumer habits and bank on some of the new-age trends, as mentioned above, that are already beginning to shape new products and offerings. While asking for fair competition is an absolute must and is not open to discussion, it’s also essential to take note of the significant wave of change in ecosystems thanks to the evolution of technology.