Why EU DMA legislation is important

[bollman]

Google Maps-effekt lyfter svenska företag

Sedan några månader visas inte längre Google Maps som första alternativ på Google. Det har gett ett användarlyft för söktjänsterna Hitta.se och Eniro.

www.dn.se

Yes, it is behind a paywall, and yes, it is in Swedish, but I'll give you a short resumé:

Since DMA went into force in the EU, Google can no longer show Google Maps as the first result when you do a Google search for an address or place of business. This has led to an increase in traffic to competing sites with 25-35%
The newspaper interviews the CEO of eniro.se which launched their map service back in 1997-1998. According to the CEO, as soon as Google launched Google Maps, traffic to their map service went way down and they could no longer afford investing in R&D for their service. Now, they plan to resume R&D as traffic is steadily rising, up 25% since last year.

This just goes to show that a large portion of internet users do not select a service based on performance or preference, they just click on the first result the search engine shows them (or what service is preinstalled on their device). And when a company is big enough, it can easilly squash any competetition simply by giving their own services preference and then move on to the next area to dominate.
This is the reason Google is prepared to give Apple huge amounts of money to stay as the preselected search engine. Users do not "choose", they "use".
I can agree that it is debateable practice to order a company not to promote their own services, but this prooves that when you reach a certain size, normal competition seems not to apply.
That is why EU DMA legislation is important, and actually make a difference.

 

[I7guy]

So basically using google maps for free advertising for its competitors is why the dma is important? The dma is protecting those poor users from themselves.

 

[bollman]

Sigh. Not really sure why this is difficult.
Read again. By making sure your own services get shown most prominent and first, you make sure you don't have any competition.
If people made informed choices, and they all thought Google Maps was the best, these companies wouldn't see any incresed traffic, would they?
By making sure Google Maps always is the "answer" to a search, there is no way for competition to get any traction. For every new service Google launches, they can make sure that competing services gets less exposure, less traffic...
Competition is GOOD, that's how we get progress.

 

[theluggage]

So basically using google maps for free advertising for its competitors is why the dma is important? The dma is protecting those poor users from themselves.

No, they're protecting you from those poor users who lack your clearly superior judgement when choosing (say) a maps service, cellphone, office software...

If Google use their "gatekeeper" status (which is what DMA is all about) in search engines and online advertising to preferentially promote (say) their other services and mop up all of the less discerning customers then there won't be any competition and you won't have any choice either (except maybe between selling your soul to Google vs. selling your soul to Meta).

I think Apple have suffered a bit of collateral damage here - I was always quite happy with the choice between iPhone if you wanted a walled garden and Android if you wanted choice and diversity, and I really don't give a wet slap whether my messages appear in a green or blue bubble - but Google have, for example, already tried to effectively force their App suite onto 3rd party Android phones by using Play Store access as a bargaining chip.

There's a lot of publicity on this site about Apple grappling with DMA, but sauce for the goose is sauce for the gander and it's also clipping Google, MS and Meta's wings. Not to mention it's not just the EU - analogous issues (e.g. Apple vs. Epic) are playing out in the US courts under antitrust laws.

 

[I7guy]

No, they're protecting you from those poor users who lack your clearly superior judgement when choosing (say) a maps service, cellphone, office software...

it’s providing free access for the competitors who won’t pay and don’t deserve it.

If Google use their "gatekeeper" status (which is what DMA is all about) in search engines and online advertising to preferentially promote (say) their other services and mop up all of the less discerning customers then there won't be any competition and you won't have any choice either (except maybe between selling your soul to Google vs. selling your soul to Meta).

I know what gatekeeper is about. I don’t agree. It provides free access to competitors using the “gatekeepers” resources.

I think Apple have suffered a bit of collateral damage here - I was always quite happy with the choice between iPhone if you wanted a walled garden and Android if you wanted choice and diversity, and I really don't give a wet slap whether my messages appear in a green or blue bubble - but Google have, for example, already tried to effectively force their App suite onto 3rd party Android phones by using Play Store access as a bargaining chip.

There's a lot of publicity on this site about Apple grappling with DMA, but sauce for the goose is sauce for the gander and it's also clipping Google, MS and Meta's wings. Not to mention it's not just the EU - analogous issues (e.g. Apple vs. Epic) are playing out in the US courts under antitrust laws.

It’s my opinion most people don’t really care about apples trajectory vis a vis the dma. It they do and decide to alter a purchase decision, so be it.

 

[bollman]

So, Google is in the business of search results from the web (debatable). And you are fine with Google giving their own services preference? You would not like your search results to reflect what is actually available, but rather what Google has to offer? So, if you want other results, you move to another search engine to get that company's preferred services?

 

[romanof]

I think it is mostly down to types of governance. In the US it is capitalistic leaning, in the EU it is socialist leaning. Both have good and bad sides.

US = What is mine is mine.
EU = What is yours is mine.