The Essence of Regulation: Objectives and Results
The creation of regulations must always begin with a clear understanding of the objectives to be achieved. Over time, it is crucial to review whether these objectives have been met and what consequences have resulted from their implementation, both in economic and social terms.
The New Digital Age: Introduction to DMA
Today, we will focus on a recent study that looks at the initial repercussions of the Digital Markets Act (DMA), passed in Europe and taking effect in November 2022, although its full effects are not expected until the first quarter of 2024. In previous articles, we have already discussed various aspects of this regulation, including the affected operators and their responsibilities.
Motivation Behind DMA
The introduction of the DMA has been justified by a series of cases of infringement in the market that the European Commission has identified as evidence that the current laws are not sufficient. This has led to the need for new regulation, similar to the telecommunications laws that already exist for incumbent operators.
Self-reference and its Consequences
Since the application of the DMA, the practice of prioritizing one’s own products within a digital platform has been prohibited. This strategy, known as ‘self-preferencing’, has been at the center of controversies, as in the case of Google Shopping, where the European Commission singled out the technological giant for this unfair practice.
Visible Changes: The Impact on Google Maps
One of the most noticeable changes that users have noticed is the disappearance of Google Maps from the Google shortcut bar. This modification responds to the new regulation, which seeks to prevent the visibility of a service from harming competition.
Analysis of Searches and Competition
After this restructuring, a significant increase in searches related to ‘Maps’ and ‘Google Maps’ has been observed, with an increase between 18% and 25% compared to previous data. This translates into between 9 and 34 million additional searches in just six months.
An Opportunity for Alternatives?
Despite the increase in searches, the evidence does not show a noticeable shift towards alternative applications such as those of Apple or Bing. The decrease in traffic to Google Maps has not been statistically significant.
Final Reflections on the DMA
The authors of the study conclude that, in the short term, restricting access to Google Maps has resulted in higher costs for users, without promoting the discovery of alternatives. Unlike other sectors where negative effects must be empirically demonstrated, this regulation imposes requirements without considering the associated costs. It is essential that the analysis of public policies includes an assessment of the objectives achieved and the costs involved.
