The European Commission is reportedly preparing to charge Google with not fully complying with the Digital Markets Act (DMA).
According to sources, Google’s recent tweaks to its search algorithms haven’t satisfied regulators’ requirements, prompting the EU to step up its scrutiny.
Key Details
Under the DMA, tech companies are expected to offer a level playing field in the EU.
The probe on Google focuses on whether the company is pushing its services, such as Google Shopping, Flights, and Hotels, over competitors.
Regulators are concerned that by giving these in-house services a leg up, Google could be stifling competition.
Failure to adhere to the DMA rules could cost a company up to 10% of its global annual revenue, which shows how significant the potential penalties could be.
Google’s Response
In response to regulatory pressure, Google has gradually changed its European search results.
These adjustments address complaints from price-comparison sites, airlines, hotels, and small retailers.
Google details the changes it’s made in response to the DMA in a blog post. Key changes include:
- Greater Visibility for Comparison Sites: Google says it’s made over 20 changes to increase the visibility of comparison sites for flights, hotels, and shopping.
- Balanced Search Options: Google has introduced new units that let users choose between results that lead to comparison sites or those that go directly to supplier websites.
- New Ad Options for Competitors: Google has launched new ad formats for comparison sites. These allow them to directly show more detailed information, like prices and images, in search results.
- Testing Simpler Search Formats: Google tested simpler search formats in Germany, Belgium, and Estonia. They removed features like hotel location maps and returned to a basic list of ten links to see how users reacted.
However, these measures have been criticized as not going far enough to level the playing field.
Google’s EMEA competition director, Oliver Bethell, has stated that the company is working toward a balanced solution with the Commission. However, he warned that further changes might negatively impact the search experience.
This investigation isn’t only targeting Google. The EU is casting a wide net over major tech companies, with similar DMA probes against companies like Apple and Meta.
Broader Context
These potential charges come amid ongoing tensions between the U.S. and Europe, adding another layer to the situation.
U.S. President Donald Trump has openly supported American tech giants, arguing that fines imposed by the EU are essentially a disguised tariff. This political pressure has raised concerns about how external influences might impact regulatory decisions.
The upcoming months will be crucial for Google and other tech companies under the EU’s scrutiny. Stay tuned as we monitor this evolving story and its implications for the SEO community.
Featured Image: Ivan Marc/Shutterstock
