Market Analysis

Fresh Changes to Google Search in Europe to Address Competitor Complaints

Amos Simanungkalit · 26 Nov 202425.9K Views

Google has proposed further adjustments to its search results in Europe following complaints from smaller competitors about reduced traffic to their platforms due to prior changes. The move comes as EU antitrust regulators consider potential charges against the company under the Digital Markets Act (DMA). This legislation, which took effect last year, prohibits tech giants from prioritizing their own products and services on their platforms to curb the dominance of Big Tech.

Since the DMA's implementation, Google has faced conflicting demands from various groups, including price-comparison websites, hotels, airlines, and small retailers. These sectors report a 30% drop in direct booking clicks due to Google's recent updates.

To address these concerns, Oliver Bethell, Google's legal director, announced in a blog post that the company has proposed additional modifications to its search results in Europe. The changes aim to balance the demands of these stakeholders while adhering to the DMA's requirements.

The proposed updates include expanded, uniformly formatted units that allow users to choose between comparison sites and supplier websites. Google also plans to introduce new formats that enable competitors to display prices and images on their sites, alongside new ad units for comparison platforms.

Bethell stated, "We believe the latest proposal strikes the right balance to address the challenging trade-offs posed by the DMA."

Additionally, Google plans a short-term test in Germany, Belgium, and Estonia to remove maps and related results beneath them for hotel searches, reverting to its earlier "ten blue links" format. The test aims to assess user interest in this simpler design. However, Bethell expressed reluctance, noting that removing helpful features may not benefit consumers or businesses in Europe.

Google has been under scrutiny by the European Commission since March, with potential fines for DMA violations reaching up to 10% of a company's annual global revenue.