Key Moments
- Google has introduced new search result formats in Europe that it says will weaken user experience and increase costs for regional businesses.
- The redesign follows a €460 million fine under the EU’s Digital Markets Act and a 60-day deadline to comply or face additional penalties.
- Early testing indicates a 30% decline in free, direct booking traffic for European businesses from prior DMA-related changes, with further negative impact expected.
Google Adjusts European Search to Address EU Antitrust Concerns
Alphabet Inc’s Google has rolled out significant modifications to how its search engine displays results in Europe, aiming to comply with European Union antitrust rules and avoid further financial sanctions. The company said the mandated changes will diminish the quality of its search service for users in the region and increase marketing costs for European firms.
A Google representative described the move as the single largest deterioration in service quality in the 29-year history of the company’s search product.
Impact on Vertical Search Services and Business Visibility
According to Google, EU authorities framed the updated approach as a way to create fairer conditions for companies buying advertising. Google, however, said the practical effect is to give an edge to price comparison platforms and other vertical search services (VSS) operating in areas such as hotels, airlines, and restaurants, including brands like Expedia and Booking.com.
Under the new structure, these intermediaries obtain greater visibility in search results when compared with individual businesses that previously appeared with direct links, along with their contact details and addresses.
Details of the New Search Layout
The revised European search interface places one specialized search engine at the very top of the results page, with two additional specialized engines appearing beneath it in a more limited format. Below these listings, users will see a carousel featuring categories such as hotels, airlines, and restaurants.
Key functionality that had previously been embedded, including real-time price information, will be removed from these carousels. Google stated that the order in which services appear will continue to be set by its search algorithm.
| Element | Previous Experience | New European Experience |
|---|---|---|
| Top-of-page content | Integrated Google results and features | One highlighted specialized search engine, plus two others with fewer details |
| Vertical categories (e.g., hotels, airlines, restaurants) | Carousels with rich information, including real-time prices | Carousels remain, but without real-time price data |
| Ranking method | Determined by Google’s algorithm | Still determined by Google’s algorithm |
Google’s Response and User Backlash
Nick Fox, Google’s senior vice-president for knowledge & information, said in a statement to Reuters: “To comply with DMA requirements, we’re making significant changes to Search in Europe.”
He added: “These changes degrade the user experience for Europeans – boosting online intermediaries at the expense of local businesses, and removing helpful features people rely on every day. Users outside the EU will not be impacted by these changes,” he said.
Google reported that earlier modifications made to fulfill Digital Markets Act (DMA) obligations led to a 30% decline in free, direct booking traffic to European businesses. The company expects the latest round of changes to further pressure those firms.
Google said it has already run tests involving millions of users in Europe, which showed high levels of dissatisfaction. Many users needed to re-enter their queries to obtain the results they were seeking, according to the company.
Regulatory Background and Financial Penalties
In July, the company was fined €460 million ($534 million) for granting preferential treatment to its own offerings in areas such as shopping, hotels, transport, and sports within search results. EU authorities determined that this conduct violated the DMA, which is designed to curb the influence of major technology platforms.
The European Commission gave Google 60 days to bring its operations into line with the DMA, warning that failure to do so could result in recurring penalty payments of up to 5% of its global turnover.
Over nearly twenty years, Google has accumulated EU antitrust penalties totaling €10.38 billion. The string of fines has prompted political criticism in the United States, including from then U.S. President Donald Trump, who threatened an investigation into what he called the bloc’s “robbing” of American companies.
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