To address regulations, Google proposes new adjustments to European search results
Google proposed to adjust its search results in Europe to address regulatory pressure and complaints from competitors. Previously, adjustments by Alphabet led to a decline in traffic for some smaller competitor websites, and EU antitrust authorities are considering filing a lawsuit against it. Under the Digital Markets Act, Google is prohibited from favoring its own products. The new proposal includes introducing new ad units and formats to allow users to choose between comparison websites and suppliers, while planning to remove maps that display hotel locations. Google stated that the adjustments aim to balance the needs of all parties
According to the Zhitong Finance APP, Google has proposed to make further adjustments to its search results in Europe. Previously, some smaller competitors complained that Alphabet (GOOGL.US)'s earlier adjustments led to a decline in their website traffic, while EU antitrust regulators are considering suing Google under the new EU tech rules.
Under the Digital Markets Act, Google is prohibited from favoring its own products and services on its platform. The act came into effect last year and aims to curb the power of large tech companies.
Since then, Google's search engine has been trying to address the conflicting demands of various parties, including comparison websites, hotels, airlines, and small retailers. The latter three companies reported a 30% drop in direct booking clicks due to recent changes by Google.
"As a result, we propose to make further modifications to our European search results to accommodate these demands while still achieving the goals set by the DMA," said Google's legal director Oliver Bethell on Tuesday.
The changes include the introduction of expanded and identical format units that allow users to choose between comparison sites and vendor sites. The new format allows competitors to display prices and images on their sites, as well as providing new ad units for comparison sites.
"We believe the latest proposal is the right way to balance the difficult trade-offs involved in the DMA," Bethell stated.
For its search results in Germany, Belgium, and Estonia, Google also plans to remove maps showing hotel locations and results below the maps, similar to the "ten blue links" format from years ago, as part of a brief test to measure user interest.
Bethell said, "We are very reluctant to take this step, as removing useful features does not benefit consumers and businesses in Europe."
Since March, Google has been a target of the European Commission. Violations of the DMA could result in fines of up to 10% of a company's global annual revenue