The European Commission has made its latest move under the Digital Markets Act, and this time Google is the target. After months of deliberation, regulators announced binding measures that will force Google to change how Android phones handle artificial intelligence and how its search data is shared with competitors. Google has criticized the decisions as a threat to privacy and security, but as a designated gatekeeper under the DMA, the company has no choice but to comply.

The announcement marks another significant escalation in Europe’s effort to curb Big Tech. The DMA, which came into force in 2024, was designed to create fairer and more contestable markets in the digital sector. It applies to companies that the European Commission classifies as gatekeepers, meaning platforms with significant market power and a central position in the digital economy. Apple, Meta, and Google have all faced steep fines and orders to alter their business practices since the regulation took effect. The new specification measures against Google are among the most detailed and consequential yet.

Key facts at a glance

• Google must give third-party AI assistants deeper access to Android, reducing Gemini’s privileged position.
• Google must share search data with competing search providers on transparent and reasonable terms.
• AI chatbots will be treated as search services for the purpose of data-sharing rules.
• The Commission says the measures are legally binding and designed to increase competition and choice for users.
• Google argues the rules undermine privacy, security, trade secrets, and even national security.
• Google must be ready to share search data by January 2027 and update Android for AI interoperability by July 2027.

Android and the race for AI assistants

One of the most immediate changes will be on Android. Google currently gives its own Gemini assistant preferential treatment on certified Android devices. Gemini comes preloaded on most Android phones sold in Europe, responds to the "Hey Google" hot word, and has access to system-level features that third-party assistants cannot match. This includes app automation, screen content reading, and integration with phone settings and notifications.

The European Commission argues that this creates an uneven playing field. Third-party AI assistants, no matter how capable or innovative, are limited in how they can offer services to users. According to the Commission, this makes them less attractive to the 60% of EU users who own an Android device. By forcing Google to open up Android to competing AI platforms, the Commission hopes users will be able to install the AI system of their choice without losing important device features.

The measures are designed to preserve user privacy and device integrity, the Commission said. However, generative AI systems rely heavily on data. When a user installs a third-party assistant and grants it access to screen content or automated actions, that data is being sent to a different company. Google has suggested that this could weaken the safeguards that phone makers and Google itself have built into Android over many years.

Search data sharing

The changes to Google Search may have even broader implications. Under the new rules, Google will be required to share search data with competing search providers. The goal is to give smaller search engines a realistic chance of challenging Google’s dominance. The Commission claims that previous offers from Google to share data did not go far enough. Rivals were not getting the same type of information that Google uses to maintain its market position.

Google will now have to provide data to other search firms transparently and for a reasonable fee. The Commission also made clear that AI chatbots will be treated as search services for the purposes of data sharing. That means companies developing AI-powered search tools could request access to the same kind of query and ranking data that Google’s own search team relies on. Regulators argue that without this access, no smaller player can realistically compete in the search market.

The data-sharing requirement is designed to be flexible. Google will be expected to anonymize data using a multilayered approach, and the Commission has said it is open to amending its decision if identifiable data needs to be handled differently. This recognizes the tension between transparency and privacy. Still, Google says the demands go too far and could expose sensitive business information.

Google’s objections

Google was vocally opposed to the new rules before they were finalized, and it has not softened its tone since. Kent Walker, Google’s president of global affairs, said the company offered more measured solutions that it believed could satisfy the DMA’s goals. In Google’s view, the path chosen by the European Commission will harm users rather than help them.

“Today’s decisions risk undermining vital privacy and security guardrails for millions of Europeans,” Walker said.

Walker specifically objected to the idea that AI assistants need greater access to Android. He argued that AI tools are already widely supported on Android and that phone makers play an important role in vetting which apps and services can integrate deeply with the operating system. Granting non-Gemini AI platforms deeper integration, he said, could circumvent those safeguards and expose users to new risks.

Google has also pushed back against the search data-sharing requirements. Walker characterized the ruling as a threat not only to user privacy but also to business trade secrets and national security. The search data that Google might be forced to share could reveal proprietary ranking algorithms, commercial partnerships, and other confidential information. Google also fears that data sharing could be exploited by bad actors to manipulate search results or to gain an unfair advantage in the marketplace.

A difficult road ahead

In reality, Google’s options are limited. The DMA gives the European Commission broad authority to impose binding obligations on gatekeepers. Fines for non-compliance can reach up to 10% of a company’s global annual turnover, and that figure can rise to 20% for repeated violations. Google can challenge the decisions in the European courts, but such challenges rarely suspend the underlying obligations. The company will have to work with regulators to implement the changes while continuing to argue that the rules are disproportionate.

The timeline now in place gives Google time to hash out the specifics with EU regulators. The company must be ready to start sharing search data with other companies in January 2027. The Android platform must be updated for deeper integration with AI apps by July 2027. These deadlines are not arbitrary; they are intended to give Google enough time to build the necessary technical systems while also showing that the Commission expects real changes to be made.

The implications of these measures extend beyond Google. The DMA has already forced Apple to open up its App Store and Meta to change how it handles advertising data. The decisions against Google demonstrate that the Commission is willing to dig deep into platform design and search algorithms. This could set a precedent for other jurisdictions, including the United Kingdom and Japan, which have developed their own digital market regulations.

For users, the outcome will depend on how both sides handle the implementation. If the Commission succeeds, Android users in Europe could see a wider range of AI assistants that work as seamlessly as Gemini does today. Search competitors could gain access to data that lets them build better products and slowly chip away at Google’s market share. If Google succeeds in narrowing the scope of the rules, the changes might be less visible. Either way, the fight over the future of digital markets is far from over.

Source:Ars Technica News