Google is set to modify how it displays search results across its platform in Europe, following feedback from smaller competitors who reported a decline in site traffic after prior changes made by the tech giant. This shift in strategy comes as the European Union evaluates whether Google has violated its technology regulations.
The EU’s Digital Markets Act (DMA), which took effect last year, prohibits Google from favoring its own products and services on its search platform in an effort to curb the influence of major technology firms.
Since the implementation of the DMA, Google has faced conflicting demands from various stakeholders, including price-comparison websites, hotels, airlines, and small retailers. Many of these groups claim that their booking clicks have plummeted by approximately 30 percent due to adjustments made by Google.
Oliver Bethell, Google’s legal director, articulated the company’s approach in a blog post on Tuesday, stating, “We have therefore proposed more changes to our European search results to try to accommodate these requests, while still meeting the goals set by the DMA.”
Proposed changes include the introduction of enhanced search result formats, which will allow users to compare options from different sites more easily. This includes providing features that enable rivals to display prices and images on their sites, along with new advertising formats tailored for comparison websites.
According to Bethell, “We think the latest proposal is the right way to balance the difficult trade-offs that the DMA involves.”
In a move aimed at testing user preferences, Google intends to remove the hotel location map and results that appear beneath it in search results for Germany, Belgium, and Estonia. This adjustment is reminiscent of the previous “ten blue links” format, which the company used years ago.
Bethell expressed caution about this decision, emphasizing, “We’re very reluctant to take this step, as removing helpful features does not benefit consumers or businesses in Europe.”
The European Commission is currently reviewing Google’s compliance with these new proposals. Google’s operations have been under scrutiny since March, with potential violations of the DMA carrying penalties of up to 10 percent of a company’s global annual revenue.
Kelkoo, a UK-based price comparison platform that has been critical of Google, dismissed the new proposal, arguing it fails to address the ongoing preferential treatment of Google’s own Comparison Shopping Services in search results. CEO Richard Stables remarked that rivals are often relegated to less favorable visibility or must interact with Google as customers, rather than as competitors.
The German Hotel Association also criticized the move to revert to blue links, suggesting it would reduce transparency and convenience for consumers. They highlighted that this format could hinder the competitiveness of independent hotels and small businesses, leading to greater reliance on third-party platforms that charge hefty commissions.
The lobbying group eu travel tech, which includes prominent members like Booking.com, Amadeus, Airbnb, and Expedia Group, indicated that Google has yet to adequately address their concerns and urged the EU Commission to impose sanctions for any breaches of the DMA.
In their statement, the group asserted that Google “seems to be stepping away from exploring innovative and impactful solutions that could resolve the concerns raised by the Commission and third parties.”
© Thomson Reuters 2024
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