3 days ago
Google Revamps Europe Search Results, Warning Of Lower Quality
Google is changing how its search engine works in Europe.
It says it is doing this to follow new European Union rules for large technology companies.
Google says the new design could make search less useful for people in Europe.
It also says local businesses may receive fewer direct visitors and bookings.
Price-comparison websites may appear more prominently instead.
Some listings will no longer show details such as live prices.
The European Union says the changes are meant to give other companies a fairer chance to compete.
Google could face more penalties if it does not follow the rules.
Google introduced changes to European search results to comply with the European Union’s Digital Markets Act.
The company said the changes will favor price-comparison sites while reducing prominence for local businesses.
Specialized search engines will receive greater visibility, while some price and feature information will be removed from listings.
Google said earlier DMA-related changes caused a 30% decline in free, direct booking traffic for European businesses.
Google faces a €460 million fine and possible penalties of up to 5% of worldwide turnover if it fails to comply.
- Who
- Alphabet’s Google and European Union antitrust regulators are central to the dispute.
- What
- Google rolled out changes to European search results under the Digital Markets Act and warned that they could reduce service quality and harm businesses.
- Where
- The changes apply to users and businesses in Europe; users outside the European Union are not affected.
- When
- The changes were announced and rolled out on Tuesday; Google was given 60 days to comply after a July fine.
- Why
- Google said the changes are required by the European Union’s Digital Markets Act, while regulators seek to prevent Google from favoring its own services.
Google’s concerns
European Union’s rationale
Effect on users
Google’s concerns
Google said the changes degrade the experience for European users, who may need to retype queries to find what they want.
European Union’s rationale
The European Union’s approach is presented as an effort to make search competition fairer by giving other companies greater opportunities to appear.
Effect on businesses
Google’s concerns
Google said the changes will favor price-comparison sites and online intermediaries at the expense of local businesses and may increase costs.
European Union’s rationale
The rules target Google’s alleged preference for its own services, with the goal of preventing that conduct from disadvantaging competing businesses.
Who benefits
Google’s concerns
Google said vertical search services connected with hotels, airlines and restaurants will gain prominence over businesses listed directly.
European Union’s rationale
The regulatory changes are intended to give specialized and competing services a more level playing field in search results.
Key facts
- EU fine
- Google was fined €460 million in July for favoring its own services in several search categories.
- Potential penalty
- Google could face periodic payments of up to 5% of its total worldwide turnover for failing to comply.
- Search changes
- One specialized search engine will appear at the top, followed by two others with fewer details.
- Removed features
- Some hotel, airline and restaurant listings will lose features such as real-time prices.
- Business impact cited by Google
- Google said earlier DMA-related changes led to a 30% drop in free, direct booking traffic to European businesses.
- Broader EU penalties
- Google has accumulated €10.38 billion in EU antitrust penalties over nearly two decades.
- Geographic scope
- Google said users outside the European Union will not be affected.
Quotes
Nick Fox
Google’s senior vice-president for knowledge and information
“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”
CNBC TV 18
“To comply with DMA requirements, we’re making significant changes to Search in Europe”
CNBC TV 18
Sources
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