Update on December 13: Google has since stopped its test of a simplified search results format for hotels in Germany, Belgium and Estonia after finding that users were “significantly less satisfied”. Traffic to hotels and intermediary sites also decreased in general.
Google has announced several changes to its search functions to comply with the EU’s Digital Markets Act. These changes are intended to level the playing field between the tech giant and third-party comparison sites.
The Alphabet-owned company will introduce search results layouts that give equal prominence to results from comparison sites and direct supplier sites, such as airlines, hotels or retailers. They will also be able to display more detailed information on the results pages, such as prices and images.
Google also creates specialized ad units for comparison platforms, enabling them to appear more prominently in search results.
Some users were dissatisfied with the search results
Additionally, Google conducted a test to understand the impact of simplifying the format of all search results to just a simple blue hyperlink. Between November 25 and December 12, it removed the search results features on hotel, vacation rental and comparison sites for users in Germany, Belgium and Estonia.
It includes the map showing hotel locations, hotel results and property information. The idea was to temporarily observe how the return to blue links affects traffic and user experience.
Google says that users were “measurably less satisfied” with their search results as it took them longer to find hotels and holiday accommodation, with many giving up before finding what they were looking for. Traffic to hotel websites decreased by more than 10%.
Google’s legal director, Oliver Bethell, says that the results prove that simplifying search functions will be a “lose-lose situation for both users and European businesses”. blog post.
“We think the latest proposal is the right way to balance the difficult trade-offs involved in the DMA,” he added in another blog.” We still hope to be able to reach a solution that complies with the law and still provides European users and businesses with access to useful technology.”
SEE: Meta and Apple breached Digital Markets Act, EU charges
SEO experts comment on Google’s changes to search functions
Alex Moss, an SEO expert from Yoast, says these changes will make a positive difference to smaller companies and comparison sites. “This will increase information democratization, which is the most natural way to have an objective search experience and enable a user to make an improved and more informed decision,” he told TechRepublic.
However, he thinks that what Google needs to do to provide a level playing field is “definitely not the same as what is legally required” by the DMA. “Google will comply with what is legally required of them and nothing more — especially if it affects profit margins,” he told TechRepublic.
However, Elie Berreby, an SEO strategist from Cyprus, said that removing search functionality for hotel and vacation rental businesses is an act of malicious compliance.
“To demonstrate why resistance to regulatory compliance makes sense, they designed a temporary ‘search engine test’ that would remove many useful Google Search features for users in Belgium, Estonia and Germany – the EU’s largest country in terms of GDP and population ,” he told TechRepublic.
“While the DMA was simply asking Google for equal treatment, their search experience appears to be designed to generate frustration and put the European consumer on Google’s side.”
Google’s changes in response to the DMA resulted in fewer clicks for airlines, hotels and retailers
The DMA prohibits Google from favoring its services over competitors in search results or other online platforms. Violations can result in fines of up to 10% of Google’s total global turnover or 20% for repeat violations.
When the DMA went live in March, the company announced some significant changes to its products and servicesincluding the temporary removal of some Google Search widgets to allow individual businesses to compete on the results page. It also introduced new settings to choose how data is shared between different Google services and “Choice screens” for Android and Chrome to encourage users to choose their preferred browser.
However, a few weeks later, the European Commission opened an investigation into Alphabet, Google’s parent company, for alleged gatekeeping – or promoting their own services over competitors’ – on applications and in browsers. It claimed that the way Alphabet presents Google search results could send customers back to Google services, such as shopping, flights or hotels.
Bethel said some of the company’s changes in response to the legislation, while benefiting travel aggregators and comparison sites, were detrimental to airlines, hotel operators and retailers.
“They reported that free direct booking clicks are down as much as 30% since we implemented our original changes,” he wrote. “And yet comparison sites insist that our changes must go even further.”
EU, UK and US fight Google’s anti-competitive practices in online search and advertising
European regulators have Google firmly in their sights because of its huge dominance in online search and advertising. In September, the European Court of Justice upheld a fine of €2.42 billion against Google for violating EU antitrust rules by favoring its own comparison service, Google Shopping, in search results.
A commission investigation into whether Google favors its own ad tech services is ongoing, but a preliminary finding from last year said a “compulsory divestment” of part of its ad tech business would be the only way to address competition concerns.
The EU is not the only country involved in Google’s alleged anti-competitive practices. In September, the UK’s Competition and Markets Authority provisionally ruled that Google’s dominance in the ad tech market was detrimental to competitors.
In 2020, the US Department of Justice and State Attorney General initiate an antitrust investigation in Google’s ad technology practices, alleging that it “illegally used the distribution agreements to stifle competition.” This investigation is ongoing.
Additionally, a federal judge ruled in August that the tech company monopolizes general search services and text ads and violates antitrust laws.
However, Google is not going down without a fight; it successfully overturned a €1.5 billion antitrust fine imposed on it by the European Commission in 2019 for preventing third parties using its AdSense platform from displaying competitor ads alongside Google search results.
It was also fined €4.34 billion by the Commission in 2018 for abusing its dominance by pre-installing Google Search in Android devices, but has since escalated an appeal to the European Court of Justice.
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