Google warned about worsening search after EU demands
On September 8, Google began changing search results in EU countries to comply with the requirements of the European Digital Markets Act (DMA) and avoid new sanctions. The company warns that the update will degrade search quality for users and may increase costs for European businesses.
The changes are a response to the European Commission's decision in July to fine Google €460 million for giving its own services advantages in search results in the shopping, hotels, transport, and sports categories.
The regulator ordered the company to stop the DMA violation. Otherwise, Google risks facing additional periodic fines.
Google claims that the new search layout will be the largest degradation in the quality of the search service in its 29-year history. The company believes that the EU requirements effectively grant more advantages to specialized price comparison services, particularly Booking.com and Expedia.
How Google search will change
After the update, for relevant queries, one specialized search or comparison service will be shown at the top of the page. Below, Google will place two more similar results, but with less information.
A separate block for hotels, airlines, or restaurants will move lower. At the same time, some of the familiar information from it will disappear — in particular, Google is removing some features with real-time prices.
The ranking of such results will still be determined by Google's algorithm.
Google's Senior Vice President for Knowledge & Information, Nick Fox, stated that the company is making “significant changes” to European search precisely to comply with the DMA.
According to Google, as a result, users will find it harder to quickly find the information they need, and intermediaries will receive more traffic at the expense of hotels, airlines, restaurants, and other businesses themselves.
Google reports a 30% drop in direct traffic
The company claims that previous search engine changes made to comply with the DMA have already led to a reduction in free direct traffic to European companies' websites that allow booking services without intermediaries by about 30%.
Google also said it tested the new search results on millions of users in Europe. According to the company, users showed a high level of dissatisfaction and were more often forced to re-enter queries to find the necessary information.
The European Commission, in turn, believes that the previous search model gave Google's own services an unjustified advantage. According to the DMA, the largest digital platforms should not promote their products in more favorable positions compared to competing services.
The new rules apply to users in the European Union. Google stated that outside the EU, search results will not change because of this decision.
Over the past almost two decades, the total amount of EU antitrust fines against Google has reached €10.38 billion.
Based on materials from: Reuters, European Commission
