Google Makes Changes to Search Features to Appease EU Regulators

Dec. 13 update: Google has since stopped its test of a simplified search results format for hotels in Germany, Belgium, and Estonia after finding that users were “measurably less satisfied.” Traffic to hotels and intermediary sites also decreased overall.

Google has announced several changes to its Search features to comply with the E.U.’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 result layouts that give equal prominence to results from comparison sites and direct supplier websites, 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 specialised ad units for comparison platforms, enabling them to feature more prominently in search results.

Some users were dissatisfied with the search results

Additionally, Google ran a test to understand the impact of simplifying the format of all search results to just a simple blue hyperlink. Between Nov. 25 and Dec. 12, it removed the search result features on hotel, holiday rental, and comparison websites for users located in Germany, Belgium, and Estonia.

These include the map showing hotel locations, hotel results, and property information. The idea was to temporarily observe how reverting to blue links influences 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 rentals, with many giving up before finding what they were looking for. Traffic to hotel websites went down by over 10%.

Google’s Director of Legal, Oliver Bethell, says that the results prove that simplifying search features would be a “lose-lose situation for both users and European businesses,” in a blog post.

“We think the latest proposal is the right way to balance the difficult trade-offs that the DMA involves,” he added in another blog.” We still hope to be able to reach a solution that complies with the law and continues to provide European users and businesses with access to helpful technology.”

SEE: Meta and Apple Violated the Digital Markets Act, EU Charges

SEO experts comment on Google’s changes to Search features

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 allow a user to make an improved and more informed decision,” he told TechRepublic.

However, he thinks that what Google should be doing to provide a level playing field is “definitely not the same as what is legally required” by the DMA. “Google will conform to what is legally required of them and nothing more – especially if that impacts profit margins,” he told TechRepublic.

However, Elie Berreby, an SEO strategist from Cyprus, said that removing search features for hotel and holiday rental businesses is an act of malicious compliance.

“To demonstrate why resisting regulatory compliance makes sense, they designed a temporary ‘search engine test’ that will remove very useful Google Search features for users in Belgium, Estonia, and Germany — 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 seems designed to generate frustration and put the European consumer on Google’s side.”

Google’s changes in response to the DMA have resulted in fewer clicks for airlines, hotels, and small retailers

The DMA prohibits Google from favouring its services over competitors in search results or other online platforms. Violations could result in fines of up to 10% of Google’s total worldwide turnover or 20% for repeated offences.

When the DMA came into force in March, the company announced some significant changes to its products and services, including temporarily removing some Google Search widgets to allow individual businesses to compete on the results page. It also introduced new settings for choosing how data is shared between different Google services and “Choice screens” for Android and Chrome to encourage users to pick 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 above competitors’ — on apps and in browsers. It claimed the way Alphabet presents Google search results may steer customers back to Google services, such as Shopping, Flights, or Hotels.

Bethel said that some of the company’s changes in response to the legislation while benefitting travel aggregators and comparison sites, have been detrimental to airlines, hotel operators, and small retailers.

“They have 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 need to go even further.”

E.U., U.K., and U.S. are fighting against Google’s anticompetitive practices in online search and advertising

European regulators firmly have Google in their crosshairs because of its huge dominance in online search and advertising. In September, the European Court of Justice upheld a €2.42 billion fine against Google for violating E.U. antitrust rules by favouring its own comparison shopping service, Google Shopping, in search results.

A Commission investigation into whether Google favours its own ad technology services is ongoing, but a preliminary finding from last year said that a “mandatory divestment” of part of its ad tech business would be the only way to address competition concerns.

The E.U. is not the only country concerned with Google’s alleged anticompetitive practices. In September, the U.K.’s Competition and Markets Authority provisionally ruled that Google’s dominance in the ad tech market is detrimental to competitors.

In 2020, the U.S. Department of Justice and state Attorney General initiated an antitrust investigation into Google’s ad tech practices, alleging it “has unlawfully used the distribution agreements to thwart competition.” That investigation remains ongoing.

Additionally, in August, a federal judge ruled that the tech company monopolizes general search services and text ads, breaking antitrust law.

However, Google is not going down without a fight; it successfully overturned a €1.5 billion antitrust fine it was handed by the European Commission in 2019 for preventing third parties that use its AdSense platform from displaying competitor ads next to Google search results.

It was also handed a €4.34 billion fine from the Commission in 2018 for abusing its dominance by pre-installing Google Search into Android devices but has since escalated an appeal to the European Court of Justice.