Google Modifies European Search Results to Comply with EU Digital Markets Act

Google is deploying changes to its search results in the European Union to comply with the Digital Markets Act and avoid further penalties from Brussels. The modifications target how the company displays results for shopping, flights, and hotels. The European Commission previously fined Google 430 million euros regarding Google Play Store rules and 460 million euros for preferential treatment of its own services over competitors. Under the DMA, Google faced periodic penalties of up to 5 percent of its global turnover if it failed to modify its practices within 60 days.

The new search layout will prioritize specialized comparison sites, such as Expedia or Booking.com, over direct links to local businesses. Specifically, the results will feature a specialized search engine at the top of the page followed by two others with fewer details. A carousel of hotels, restaurants, or airlines will also be included, though real time pricing information will be absent. Google algorithms will determine the ranking of these results.

Google has warned that these changes will degrade the user experience and increase costs for European companies. Nick Fox, vice president of knowledge and information, stated that the modifications favor online intermediaries over local businesses. Google claims that previous changes led to a 30 percent drop in free direct booking traffic for European companies. The company also cited tests involving millions of users showing high levels of dissatisfaction and a tendency for users to abandon searches or reformulate queries to find what they need.