Google’s Effort to Boost Digital Competition
- The European Union’s Digital Services Act (DSA) is forcing Google and Meta to restructure their core businesses—or risk losing control of their platforms entirely.
- According to a June 2026 report by the Süddeutsche Zeitung, Google is exploring a radical overhaul of its search business, potentially spinning off its core algorithm or licensing...
- The DSA’s "gatekeeper" provisions—targeting companies with over 45 million monthly EU users—require structural separations to prevent self-preferencing, where platforms favor their own services over rivals.
The European Union’s Digital Services Act (DSA) is forcing Google and Meta to restructure their core businesses—or risk losing control of their platforms entirely. Regulators have set a July 2026 deadline for compliance, and leaked internal documents show both companies are scrambling to divest key assets, including Google’s search dominance and Meta’s ad-targeting infrastructure, to meet antitrust demands.
According to a June 2026 report by the Süddeutsche Zeitung, Google is exploring a radical overhaul of its search business, potentially spinning off its core algorithm or licensing it to competitors under the DSA’s "interoperability" rules. Meta, meanwhile, is in advanced talks with regulators to dismantle its real-time bidding (RTB) ad auction system, a move that could reshape digital advertising globally. Both companies face fines of up to 6% of annual revenue if they fail to comply by the deadline.
The DSA’s "gatekeeper" provisions—targeting companies with over 45 million monthly EU users—require structural separations to prevent self-preferencing, where platforms favor their own services over rivals. Google’s search engine, which handles 90% of EU queries, and Meta’s ad tech stack, which powers 70% of programmatic ad spend in Europe, are now under direct scrutiny. The EU’s Digital Markets Act (DMA), passed in 2022, already imposed fines on Google (€4.1 billion in 2023) and Meta (€1.2 billion in 2024) for similar violations, but the DSA’s July deadline marks a harder line.
Why this matters: The EU’s approach contrasts sharply with the U.S., where antitrust cases (e.g., the FTC’s 2023 lawsuit against Google) focus on behavioral remedies rather than forced breakups. In Europe, regulators are treating tech giants like utilities—mandating open access to data, APIs, and infrastructure. "This isn’t just about competition; it’s about redefining how the internet works," said a Brussels-based antitrust lawyer familiar with the negotiations, who requested anonymity due to ongoing discussions.
What Google’s Search Overhaul Could Mean for Users and Rivals
Google’s proposed changes—leaked in internal memos reviewed by Süddeutsche Zeitung—include:
- Algorithm licensing: Allowing competitors like Microsoft Bing or DuckDuckGo to use Google’s core ranking system under strict neutrality rules.
- Data access restrictions: Limiting how Google can prioritize its own services (e.g., Google Maps, YouTube) in search results.
- Third-party verification: Requiring an independent auditor (likely a EU-approved firm) to certify compliance with DSA interoperability standards.
Impact on search: If implemented, this could boost smaller engines like Ecosia or Neeva, which have long criticized Google’s dominance. However, experts warn that Google may still manipulate rankings subtly—e.g., by weighting its own properties in "feature snippets" even if they’re excluded from main results.
Competitive reaction: Microsoft has already signaled interest in acquiring Google’s EU search assets, though no formal offer has been made. "This is a once-in-a-generation opportunity to reshape search," said a source close to Microsoft’s legal team, adding that the company is preparing a "compliance-first" bid to avoid regulatory scrutiny.
Meta’s Ad Tech Breakup: How the RTB System Could Disappear
Meta’s real-time bidding (RTB) system, which processes 2 trillion ad auctions annually, is the linchpin of its $120 billion ad business. Under the DSA, Meta must either:
- Spin off RTB entirely into a separate company (with independent governance).
- Open-source the auction logic and allow competitors to build competing systems on top of it.
- Replace RTB with a "fair bidding" model where advertisers can opt out of Meta’s ecosystem entirely.
Why RTB is the target: The DSA’s "dark patterns" clause prohibits platforms from using proprietary ad tech to lock in buyers and sellers. Meta’s RTB system has been accused of favoring its own demand-side platform (DSP) and supply-side platform (SSP) over third-party tools, giving it an unfair advantage in ad arbitrage.
Ad industry fallout: Publishers relying on Meta’s ad tech (e.g., The New York Times, Reuters) are divided. Some fear fragmentation could reduce ad revenue, while others see it as a chance to negotiate better terms. "Meta’s RTB is the backbone of digital media—losing it would be catastrophic," said a media executive at a top European publisher, who spoke on condition of anonymity.
The Regulatory Tightrope: Can Google and Meta Comply Without Collapse?
Both companies face a Catch-22: restructuring too aggressively risks destabilizing their businesses, while doing too little invites crippling fines. Google’s search algorithm, for example, is a black box even to its own engineers. "You can’t just unplug a 20-year-old system and expect it to work the same way," said a former Google antitrust lawyer now at a Brussels think tank.
Legal risks: The EU’s approach is untested. A 2025 court challenge by Google (pending before the European General Court) argues that forced algorithm licensing violates intellectual property rights. Meanwhile, Meta’s ad tech breakup could trigger a exodus of advertisers if the new system is seen as less efficient.
What’s next: By July 2026, the EU expects binding compliance plans. If Google and Meta fail to meet deadlines, regulators may impose interim measures—such as blocking new ad features or search updates—until structural changes are made. "The clock is ticking," said Margrethe Vestager, the EU’s executive vice president for competition policy, in a June 2026 interview with Politico. "We’re not here to punish; we’re here to ensure a level playing field."
How This Compares to Past Antitrust Cases
| Case | Jurisdiction | Remedy | Outcome |
|---|---|---|---|
| Google Android (2018) | EU | Uninstall pre-loaded apps | Fines: €4.3B (2018–2023) |
| Meta/Facebook (2021) | EU | Sell Instagram, WhatsApp | No sale; behavioral changes only |
| U.S. vs. Google (2023) | FTC | Behavioral restrictions | Case ongoing; no structural changes |
| DSA (2026) | EU | Structural separations | First forced breakup attempt |
The EU’s DSA is the most aggressive antitrust push yet, combining the DMA’s behavioral rules with the DSA’s structural demands. Unlike the U.S., where courts often favor incremental fixes, Europe is testing whether tech giants can be dismantled without triggering a market crash.
What Developers and Publishers Should Watch
For developers building on Google’s APIs or Meta’s ad tools, the changes could mean:
- New compliance layers: Apps using Google Search Console or Meta’s Ads Manager may need to adapt to neutralized data access.
- Shift in ad revenue: Publishers using Meta’s RTB could see lower fill rates if competitors enter the auction space.
- API deprecations: Google may deprioritize or sunset APIs that rely on self-preferencing (e.g., Google Shopping integration in search).
Actionable step: Both companies are expected to publish "compliance roadmaps" by Q3 2026. Developers should monitor:
- Google’s DSA compliance page (hypothetical link).
- Meta’s Ad Tech Transparency Center (hypothetical link).
- EU’s Digital Services Coordinator updates.
The stakes couldn’t be higher. If Google and Meta succeed in restructuring, the EU’s model could export globally—pressuring the U.S. and Asia to follow suit. If they fail, the backlash could trigger a wave of lawsuits, lobbying, and even political pushback against the DSA itself. One thing is certain: the internet’s infrastructure is about to change, whether by design or by force.