Google has proposed changes to its search results in Europe to address complaints from smaller rivals about decreased traffic to their search engines. This move is aimed at preempting potential charges that could be brought against the company by European Union antitrust regulators under the Digital Markets Act (DMA).
The DMA, which took effect last year, prohibits Google from favoring its own products and services on its platform. Despite previous efforts to accommodate various stakeholders, including price-comparison sites, hotels, airlines, and small retailers, some groups have reported a significant drop in direct bookings since Google implemented certain changes.
If found to be in violation of the DMA, Google could face fines of up to 10 percent of its annual global turnover. In response, Google’s legal director, Oliver Bethell, announced additional modifications to European search results to address concerns while complying with the DMA’s objectives.
These changes include allowing users to choose between comparison sites and supplier websites, enabling rivals to display prices and images on their websites, and introducing new ad units for comparison sites. Bethell emphasized that Google has engaged extensively with the European Commission and industry stakeholders to gather feedback on these proposed changes.
While many stakeholders have expressed satisfaction with the adjustments, some sites continue to demand further restrictions, prompting Google to consider removing certain features, such as the map showing hotel locations and related results, in select European countries for a test period.
‘Does Not Benefit Consumers’
Google is cautious about removing these features, as it believes that doing so would not benefit consumers or businesses in Europe. Bethell stated that the latest proposal strikes a balance between the challenging trade-offs required by the DMA.
In a related development, U.S. regulators, including the Department of Justice (DOJ), have sought to break up Google’s operations following a ruling that found the tech giant in violation of antitrust laws. The proposed remedy includes divesting Google’s Chrome browser and exploring the potential divestiture of the Android operating system to address concerns about monopolistic practices.
Despite these regulatory challenges, Google’s parent company, Alphabet, reported strong third-quarter revenue growth driven by digital advertising sales and increased demand for its cloud services. The company’s diverse portfolio, which includes YouTube, Android, and AdSense, continues to drive revenue growth and market expansion.
Overall, Google’s efforts to comply with regulatory requirements while maintaining innovation and competition in the digital market reflect its commitment to addressing stakeholder concerns and fostering a competitive marketplace.
Reuters contributed to this report.
