Google, the world’s leading search engine, has unveiled additional modifications to its search results in Europe as it faces mounting pressure from smaller competitors and EU regulators.
The changes come in response to complaints from price-comparison websites, hotels, airlines, and retailers, who argue that recent updates have diminished their online visibility and reduced direct booking traffic.
These moves aim to comply with the European Union’s Digital Markets Act (DMA), which was implemented last year to curb the dominance of Big Tech companies.
DMA: Digital Markets Act
The DMA, a landmark regulation targeting major tech firms, prohibits companies like Google from favoring their own products and services on their platforms.
The law’s implementation has forced Google to navigate conflicting demands from various stakeholders while avoiding steep penalties.
Violations of the DMA can lead to fines of up to 10% of a company’s global annual revenue.
Since the act came into effect, Google has made several attempts to address concerns raised by price-comparison platforms and other industries.
Recent changes, however, have reportedly caused a 30% drop in direct booking clicks for hotels, airlines, and small retailers, prompting additional revisions to Google’s practices.
New search result features and tests in Europe
In a bid to balance the interests of all parties, Google announced several new features for its European search results. These include:
- Expanded comparison options: Google is introducing equally formatted units that allow users to compare offerings from different websites. This move aims to create a level playing field for rival platforms.
- Visual enhancements: Rivals can now display prices and images directly on Google’s search results through new formats, making their offerings more competitive.
- Dedicated ad units for comparison sites: To support smaller players, Google is offering new advertising options tailored to their needs.
Along with these updates, Google is experimenting with significant changes in Germany, Belgium, and Estonia.
The search giant plans to temporarily remove its signature map feature for hotels, reverting to a simpler “ten blue links” format that was popular in earlier versions of its search results. This short-term test seeks to gauge user interest and satisfaction with a stripped-down interface.
Balancing innovation and compliance
While Google emphasizes its commitment to meeting the DMA’s goals, the company expressed concerns about removing key features. Oliver Bethell, Google’s legal director, stated,
We’re very reluctant to take this step, as removing helpful features does not benefit consumers or businesses in Europe.
Google also highlighted the challenges of implementing changes that satisfy both regulatory requirements and consumer expectations. In a blog post, the company described the latest proposals as an effort to balance the “difficult trade-offs” posed by the DMA.
EU antitrust scrutiny intensifies
The European Commission has been closely monitoring Google since March, focusing on the tech giant’s compliance with the DMA.
The current changes reflect Google’s ongoing efforts to avoid further regulatory action, which could result in substantial fines.
For Google, maintaining compliance with the DMA while retaining its competitive edge remains a delicate balancing act.
As EU regulators assess whether these updates address industry complaints adequately, the stakes are high for Google and its European operations.
If the Commission deems these measures insufficient, further investigations and penalties could follow.
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