The European Union’s Digital Markets Act (DMA), once heralded as a transformative blueprint for reining in Big Tech, is now drawing fire from one of its primary targets. Google has warned that the sweeping legislation may be stifling innovation and harming user experience particularly in sectors like travel, where streamlined digital access is critical.
Introduced to curb the power of so-called “gatekeepers,” the DMA imposes strict requirements on dominant tech firms, mandating more visibility for rivals and less preferential treatment for the companies’ own services. But according to Google’s legal representatives, this restructuring has led to unintended consequences. At a European Commission workshop, the company argued that changes mandated by the DMA have made digital navigation more complex, driving up consumer costs and reducing web traffic for European businesses.
Clare Kelly, Google’s senior counsel, cited data showing that airlines, hotels, and restaurant partners have seen up to a 30% drop in direct web traffic. This decline, she said, is linked to recent search modifications made to comply with the DMA – changes that have fragmented the user experience and made it harder for consumers to access direct booking options.
The criticism comes amid broader scrutiny. Google is already facing antitrust charges under the new rules for allegedly prioritizing its own services- such as Google Flights and Shopping over competitors. If found in violation, the company could face fines of up to 10% of global annual revenue.
Beyond the legal stakes, the conversation around the DMA is evolving into a deeper debate about regulation versus innovation. Industry groups argue that overlapping mandates from the DMA, the Digital Services Act, and the newly passed AI Act may overburden even the largest tech firms while deterring startups from scaling within the EU. They’ve called for more consistent guidance and impact assessments to ensure the regulations don’t undermine Europe’s own digital competitiveness.
As EU regulators press ahead with implementation, the road to tech accountability may now hinge on whether the bloc can adapt its rulemaking to foster both fairness and future-ready innovation. The balance between oversight and growth is proving to be more fragile and more politically charged than ever.
