Google to show rivals more in Search to avoid EU fine

Google has proposed changes to its search results to highlight competitors more prominently, aiming to avoid a potential fine under the EU’s Digital Markets Act (DMA).

The move follows charges from the European Commission, which accused Google of favoring its own services like Google Shopping and Google Flights.

The DMA sets rules to curb the dominance of big tech firms and promote fair competition.

According to the plan, selected vertical search services (VSS) would appear in a dedicated box at the top of search results.

This box would include three direct links to sectors like hotels and transport. Other VSS would appear lower unless users click specifically.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Google’s latest proposal follows a decade-long pattern of EU antitrust enforcement

Google’s current offer to change search results continues a long pattern of reactive concessions following EU regulatory pressure that began over a decade ago.

The EU Commission has already imposed multiple significant fines on Google, including a landmark €2.42 billion penalty in 2017 specifically for favoring its own comparison shopping service in search results 1.

This marks the latest chapter in a regulatory saga that began when UK price-comparison site Foundem filed a formal complaint with the European Commission in 2009, triggering the initial investigation into Google’s search practices 2.

Since then, Google has faced additional EU fines, including €1.49 billion in 2019 for abusing its dominance in online advertising through its AdSense service by imposing restrictive clauses in contracts with third-party websites 3.

The EU’s persistent focus on Google’s self-preferencing behavior reflects a fundamental concern about dominant platforms using their gatekeeper position to advantage their own services at the expense of competitors.

2️⃣ The DMA represents a significant shift from reactive to proactive tech regulation

The current case against Google falls under the Digital Markets Act (DMA), representing a fundamental shift from the EU’s previous case-by-case approach to a more systematic regulatory framework.

Under the DMA, which took effect in 2023, the EU designated six “gatekeepers,” including Alphabet, establishing clear “dos and don’ts” designed to prevent anti-competitive practices before they harm the market 4.