Google tests pro-competition display in search results in Europe

Its action is as a result of the Digital Marketing Act

To avoid a fine under the Digital Markets Act, Google is reportedly preparing to test changes in the display of its results in Europe, giving more space to vertical search engines for hotel, flight and restaurant searches.

Google said it is conducting tests to modify the presentation of its search results in order to give greater visibility to competing vertical search services. This includes searches related to travel, hotels, flights, and restaurants. 

The company is facing charges from the European Commission for alleged breaches of the Digital Markets Act (DMA), specifically for preferential treatment of its own services, practices which could result in penalties of up to 10% of its global annual revenue.

Search results pages will therefore integrate, by default, the top-ranked vertical search engines, displayed alongside Google's results, explains a Reuters report. 

Hotels, airlines, restaurants, and transportation services that power the search via real-time data feeds will appear above or below this list of vertical search engines. 

The intention is to juxtapose specialized sources and Google results on the same screen, improving the visibility of competing offerings. 

The rollout is planned across the European Union, with an initial phase focused on accommodation, followed by a gradual expansion to flights and other tourism services.

Alphabet, Google's parent company, is opting for this evolution as the company faces recurring criticism from regulators and market players regarding "self-preferencing," the alleged tendency of a platform to favor its own services. 

By adjusting the interface, Google intends to demonstrate its compliance with the DMA and to reflect a more equitable environment for vertical services. For the travel ecosystem, the key issue is visibility in top search results, which is crucial for conversion.

The Digital Markets Act, which came into effect on March 7, 2024, regulates the practices of large digital platforms considered "gatekeepers" by the European Union. 

Google is suspected of having continued to prioritize its own services in its search results, to the detriment of competing online travel companies. 

These practices have been the focus of criticism from OTAs and European travel tech representatives for months.

Since 2017, Google has accumulated €9.71 billion in fines for other antitrust cases in Europe, Reuters reports.