The rise of artificial intelligence has brought into focus the regulatory spotlight on big tech firms, and in Europe, Google is in the cross-hairs. With the rise of competition in AI, regulators are particularly interested in how major platforms are facilitating access to smaller players. In response, the European Commission has recently issued new guidance to prevent innovation being trapped within the confines of a handful of ecosystems.
The focus is on the way Google controls access to its services, especially those associated with its artificial intelligence (AI) platform, Gemini AI. The Commission’s latest action is part of a wider crackdown on the Digital Markets Act, a new law aimed at curbing the power of Big Tech and fostering competition in the digital economy. Already in the early part of the year, regulators had begun a formal process, and now they’re providing more specific guidance on what compliance means.
The issue for regulators is simple but serious. Google, particularly with its Android operating system, has long been regarded as both an enabler of innovation and a gatekeeper. It allows a broad array of apps and services, but at the same time, regulators contend, it restricts some key functions. This, in turn, they say, constrains the ability of competitors in the market for AI services and search engines to compete.
“Today’s proposed measures will give more choice to Android users about the AI services they use and integrate in their phone, including from the vast range of AI services that compete with Google’s own AI,” EU antitrust chief Teresa Ribera said in a statement.
This quote reflects one of the Commission’s concerns: choice. Concretely, the proposed actions will ensure that rival AI services will be able to easily connect with Android devices. This would mean that third-party apps can easily complete tasks like sending an email, sharing a photo, or booking a ride. For consumers, it could result in a more customisable experience, giving them the freedom to choose from multiple AI assistants.
But it is not so clear-cut from Google’s point of view. It claims Android has always been an open platform, giving manufacturers and developers flexibility. In Google’s view, the new regulations will only limit that freedom. It has also expressed concerns about the potential privacy and security implications, especially if sensitive system permissions are more widely shared.
“This unwarranted intervention would strip away that autonomy, mandate access to sensitive hardware and device permissions; unnecessarily driving up costs while undermining critical privacy and security protections for European users,” the company’s Senior Competition Counsel, Clare Kelly, wrote in an email.
The balance between openness and control is not a new dilemma, but it becomes even more important when it comes to AI. AI apps frequently need more access to device features to be useful. From access to contacts and messages to other apps, system access is critical to the effectiveness of an AI assistant. The Commission is concerned that restricting access to competitors creates an unfair advantage, while Google is concerned that open access could be a security threat.
Another key aspect of this move is the timing. The Commission’s move comes at a time when AI is advancing rapidly and increasingly playing a vital role in our digital lives. The industry is in a fierce race to develop more advanced assistants, and having access to platforms such as Android can play an important role in this. By encouraging interoperability, regulators are actively influencing the future of the AI market.
There is also a procedural aspect involved. The Commission has called for public input, with a deadline in mid-May. During this period, various stakeholders, such as competitors, developers and consumer organisations, can provide their feedback on the proposed rules. This will inform the final decision, due by the end of July. The consequences of non-compliance with the Digital Markets Act could be significant, with fines as high as ten percent of the company’s worldwide turnover.
Meanwhile, Google has also received specific directions for its search operations. The company has been instructed to give competitors and chatbots powered by artificial intelligence more access to its search data. This move reflects a broader regulatory principle: just like infrastructure, data shouldn’t become a barrier to competition. This will allow the Commission to promote a more competitive digital economy.
In a broader context, this move is part of a regulatory trend towards addressing technology giants. Rather than intervening once markets are established, regulators are now acting to shape the development of markets. The Digital Markets Act is an example of this proactive approach, seeking to proactively head off anti-competitive practices.
At the same time, the question of balance is raised. What level of regulation is needed to promote fairness but not innovation? How can platforms be safe and secure while also allowing more competition? And, perhaps most crucially, will it be good for users, or just for businesses?
