Google’s Ideas to Adapt Search Results Amid EU Scrutiny

Search engines have become an integral part of daily life for billions of people worldwide. These powerful tools not only provide access to vast amounts of information but also significantly influence online commerce and digital marketing strategies.

As the dominance of major tech companies in this space has grown, regulators have increasingly focused on ensuring fair competition and protecting smaller businesses in the digital marketplace.

In this context, Google has proposed additional modifications to its search results in Europe.

This move comes in response to complaints from smaller competitors about decreased traffic to their websites following previous adjustments made by Google and as EU antitrust regulators consider potential charges against the company under new EU tech regulations.

Digital Markets Act and its implications

The Digital Markets Act (DMA), which came into effect last year, prohibits Google from favouring its own products and services on its platform.

This legislation is part of a broader effort by the EU to curb the power of large technology companies and promote fair competition in the digital marketplace.

Since the implementation of the DMA, Google has been working to address conflicting demands from various stakeholders, including price-comparison sites, hotels, airlines and small retailers.

According to Oliver Bethell, Google's Legal Director, these groups have claimed that their direct booking clicks have decreased by 30% due to recent changes made by Google.

Oliver states in a blog post: "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".

Google’s proposed changes to search results

The modifications proposed by Google include the introduction of expanded and equally formatted units that allow users to choose between comparison sites and supplier websites.

In effort to accommodate these requests, whilst also meeting the goals set by the DMA, changes proposed to Google’s European search results include.

Additionally, new formats will enable rivals to display prices and pictures on their websites and new ad units for comparison sites will be introduced.

Oliver expressed confidence in the company's approach, saying: "We think the latest proposal is the right way to balance the difficult trade-offs that the DMA involves".

Meanwhile, in a more drastic move, Google is planning to conduct a short test in Germany, Belgium and Estonia by removing the map showing hotel locations and the results beneath it.

This change would revert the search results to a format similar to the old “ten blue links” style used years ago, as Oliver puts it.

The purpose of this test is to gauge users' interest in this simplified format.

However, Oliver expressed reservations about this particular change, stating: "We're very reluctant to take this step, as removing helpful features does not benefit consumers or businesses in Europe".

Balancing innovation with regulation

Google's adjustments are part of a broader strategy to navigate the regulatory landscape while maintaining its market position.

The company has already made over 20 modifications to its search services in Europe since the DMA's implementation.

These changes include redesigning features and removing others entirely to comply with EU regulations.

Despite these efforts, some stakeholders continue to demand further adjustments.

According to Google, some comparison sites are insisting on even more significant changes. The company acknowledges that while many changes have benefited large online travel aggregators and comparison sites, airlines, hotel operators and small retailers are now finding it harder to reach customers.

The European Commission has additionally been closely monitoring Google's compliance with the DMA.

As a designated gatekeeper, Google faces strict requirements aimed at preventing self-preferencing and ensuring fair competition.

Violations of these rules can result in fines of up to 10% of a company's annual global turnover.

The Commission's ongoing scrutiny highlights the challenges faced by major tech companies in balancing innovation with regulatory compliance.

As Google continues its efforts to comply with European regulations, it remains committed to finding solutions that meet legal requirements while providing value to users and businesses. "We think the latest proposal is the right way to balance the difficult trade-offs that the DMA involves.

“We still hope to be able to reach a solution that complies with the law and continues to provide European users and businesses with access to helpful technology", Oliver concludes.

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