Google Revamps Search Results in Europe Amid EU Scrutiny

The EU law, which took effect last year, aims to foster fair competition in digital markets. Google has since navigated conflicting demands from various stakeholders, including price-comparison platforms, hotels, airlines and small retailers. According to Reuters, these groups have criticized recent changes to Google’s search results, claiming they led to a 30% decline in direct booking clicks.

In response, Google has announced plans to introduce several adjustments. Oliver Bethell, Google’s legal director, detailed the proposals in a blog post on Tuesday. The changes include expanding search result units to equally highlight comparison sites and supplier websites, new formats allowing rivals to display prices and images, and additional ad units designed specifically for comparison platforms.

“We have therefore proposed more changes to our European search results to try to accommodate these requests, while still meeting the goals set by the DMA,” Bethell said. He added, “We think the latest proposal is the right way to balance the difficult trade-offs that the DMA involves.”

Testing ‘Blue Links’ Format and Controversial Map Removal

In Germany, Belgium and Estonia, Google plans to temporarily revert to a simpler search results format reminiscent of its older “ten blue links” layout. As part of this test, the company will remove the map feature that typically displays hotel locations, along with the associated results beneath it. Bethell expressed reluctance about this change, stating, “We’re very reluctant to take this step, as removing helpful features does not benefit consumers or businesses in Europe.”

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Mixed Reactions from Industry Players

Google’s proposals have elicited a mixed response. British price-comparison platform Kelkoo criticized the plan, arguing it fails to eliminate the preferential treatment Google allegedly gives its own Comparison Shopping Services (CSS). Kelkoo CEO Richard Stables told Reuters the proposal leaves competitors disadvantaged, with limited visibility or reliance on Google as a customer rather than a rival.

Similarly, the German Hotel Association expressed concerns that reverting to basic “blue links” could hurt small and independent hotels. “For hotels, particularly independent operators and small businesses, the return to basic blue links makes it harder to compete. It diminishes their visibility and increases dependence on third-party platforms that demand significant commissions, undermining their profitability and sustainability,” the association said.

Meanwhile, EU Travel Tech, a lobbying group representing major platforms like Booking.com and Airbnb, urged the European Commission to hold Google accountable for DMA violations. The group criticized Google for failing to address key issues, stating, “Google seems to be stepping away from exploring innovative and impactful solutions that could resolve the concerns raised by the Commission and third parties.”

Regulatory Scrutiny and Potential Penalties

The European Commission is currently evaluating Google’s latest compliance measures. Google has been under investigation by the Commission since March for alleged DMA violations. Companies found guilty of breaching the law face fines of up to 10% of their global annual turnover, a significant financial threat for firms of Google’s scale.

Source: Reuters