Google will adjust search results in Europe after rivals complained

Google plans to make adjustments to the display of search results on its platform in Europe after some smaller rivals complained about less traffic to their sites following earlier tweaks by its Alphabet unit and as EU regulators investigate whether the company is breaking EU technology rules has violated.

Under the EU Digital Markets Act (DMA), Google is prohibited from favoring its products and services on its platform. The law came into effect last year and is intended to rein in the power of Big Tech.

The world’s most popular Internet search engine has since tried to accommodate conflicting demands from the likes of price comparison sites, hotels, airlines and small retailers. The last three groups said their direct booking clicks dropped by 30 percent due to recent Google changes.

“We have therefore proposed more changes to our European search results to meet these requests, while still meeting the objectives of the DMA,” Oliver Bethell, Google’s chief legal officer, said in a blog post on Tuesday.

Changes include the introduction of expanded and similarly formatted blocks that allow users to choose between comparison sites and supplier websites, new formats that allow rivals to display prices and images on their websites, as well as new ad units for comparison sites.

“We believe the latest proposal is the right way to balance the difficult tradeoffs posed by the DMA,” Bethell said.

For search results in Germany, Belgium and Estonia, Google also plans to remove the hotel location map and results below the map, similar to the old ‘ten blue links’ format from years ago, as part of a short test. to gauge user interest.

“We are very reluctant to take this step because removing useful features will not provide any benefit to consumers or businesses in Europe,” Bethell said.

The European Commission said it is currently assessing Google’s compliance proposals. Google has been in the Commission’s sights since March. Violations of the DMA can cost companies as much as 10 percent of their annual global revenue.

The British price comparison site and Google critic Kelkoo rejected the proposal.

“They do not address the obvious preferential treatment of Google’s own CSS (Comparison Shopping Services) within search results, where rivals are limited to a much less favorable display (if they appear at all) or are forced to act as customers from Google rather than as competitors. ‘, said Kelkoo CEO Richard Stables.

The German Hotel Association said a return to blue links, as requested by booking and comparison sites, would be less transparent and less convenient for consumers.

“For hotels, especially independent operators and small businesses, the return to basic blue links makes it harder to compete. It reduces their visibility and increases dependence on third-party platforms that charge significant commissions, undermining their profitability and sustainability,” the report said.

Lobby group eu travel tech, whose members include Booking.com, Amadeus, Airbnb and the Expedia Group, said Google had not yet addressed its concerns and urged the Commission to charge the company with DMA infringements.

Google “appears to be moving away from exploring innovative and impactful solutions that could address the concerns of the Commission and third parties,” the group said.

© Thomson Reuters 2024

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