Google to Modify Search Results in Europe Amid Rival Complaints

Google to Modify Search Results in Europe Amid Rival Complaints

Sub : IR

Sec: Int groupings

• Background:
  • Google, a unit of Alphabet Inc., will adjust search result displays in Europe following complaints from smaller rivals and ongoing scrutiny from EU regulators.
  • The changes are prompted by the EU Digital Markets Act (DMA), which prohibits Big Tech from favoring its own products and services on their platforms.
• Complaints from Rivals:
  • Price comparison sites, hotels, airlines, and small retailers reported a 30% drop in direct booking clicks due to Google’s recent changes.

Google’s Proposed Changes:

• Expanded Display Units:
  • New formats allowing users to choose between comparison sites and supplier websites.
  • Rivals can now showcase prices and pictures on their sites, along with new ad units for comparison services.
• Return to “Blue Links” Format:
  • Google will test removing the map view for hotel search results in Germany, Belgium, and Estonia, reverting to its older “ten blue links” layout.
  • Short test period to assess user feedback on the changes.
• Concerns from Google and Industry:
  • Google’s Perspective: Removing features like maps may reduce convenience and harm both consumers and businesses.
  • German Hotel Association: Fears reduced visibility for independent hotels, potentially increasing reliance on third-party platforms with high commission fees.

10 blue links

The term “10 blue links” refers to the traditional format of search engine results, especially in Google’s early days, where search results were displayed as a simple list of 10 clickable, blue-colored hyperlinks.

Each link would lead directly to a relevant webpage without any additional features like images, maps, or ads.

Characteristics of the 10 Blue Links Format:

• Plain Text Links: Results were basic hyperlinks in blue text.
• Minimal Design: No extra features like images, ads, or rich snippets.
• Equal Opportunity: All results were ranked purely on search relevance, offering smaller sites a fair chance to appear on the first page.

Why Is It Relevant Today?

In the context of Google’s recent EU regulatory changes, the Digital Markets Act (DMA) has prompted discussions about whether Google should revert to this simpler format to avoid favoring its own services (e.g., maps, hotel listings). Critics argue that modern search results prioritize Google’s own content, diminishing visibility for competing services.

EU’s Digital Markets Act (DMA)

The Digital Markets Act (DMA) is the European Union’s landmark legislation aimed at creating a fairer, safer, and more competitive digital market. It specifically targets large digital platforms, or gatekeepers, to prevent anti-competitive practices and ensure a level playing field.

Objective of the DMA:

• Promote Fair Competition
• Enhance Consumer Protection
• Foster Innovation

Key Provisions:

• Gatekeeper Identification:
  • Gatekeepers are large digital platforms providing core platform services like search engines, app stores, and messaging services.
  • Companies such as Apple, Google, and Meta are being investigated for potential breaches under this Act.
• Do’s (Obligations) and Don’ts (Prohibitions) for Gatekeepers:
• Data Protection:
  • Gatekeepers must obtain explicit user consent before tracking activities for advertising purposes.
• Interoperability of Messaging Services:
  • Platforms like WhatsApp must enable users to send messages to other services such as Telegram or Signal.
• Uninstall Preloaded Apps:
  • Users must have the option to uninstall preloaded apps on their devices.
• Fair Ranking of Products:
  • Gatekeepers are prohibited from ranking their own products or services higher than those of competitors in search results.