🛑 Google Halts EU Search Test
Google has ended its test of simplified “blue links” for hotel-related searches in the EU. This trial was intended to address compliance with the bloc’s Digital Markets Act (DMA). These stripped-down results replaced richer formats featuring images, prices, and maps. Google claims that hotel traffic dropped by over 10% during the trial, affecting businesses directly. Traffic to aggregator sites reportedly stayed flat, undermining the idea that basic results benefit rivals.
🌍 EU's Strict DMA Compliance
Enacted in March 2024, the DMA imposes rules on tech giants to prevent anti-competitive practices. Google’s rich search features, such as embedded hotel data, have faced accusations of self-preferencing, which breaches DMA rules. Fines for non-compliance can reach 10% of global revenue or more. Google argues its rich results are more user-friendly, and basic formats harm both users and businesses. Despite making adjustments, the company remains under EU scrutiny, with ongoing investigations into its practices.
📊 Google’s Pushback Intensifies
Google is using the test results to advocate for a lenient interpretation of the DMA. In a blog post, Oliver Bethell, Google’s legal director, stated that compliance so far has already diverted traffic to intermediaries, raising consumer costs. Bethell warns that further regulatory demands could force Google to remove helpful features, framing this as a “lose-lose situation” for Europe. The company argues its innovations benefit both users and businesses, and excessive compliance burdens degrade user experience.
💼 EU’s Pending Response
The European Commission has yet to issue a conclusion on Google’s compliance, despite closing cases on Apple and Meta. Google’s framing of the DMA as harming consumers is unlikely to sway regulators, who emphasize competition. EU regulators face the challenge of enforcing the DMA without sacrificing consumer benefits. Google remains steadfast, seeking a less stringent interpretation while the Commission balances innovation and fair competition in its deliberations.
Should the EU soften its stance on Google’s DMA case?
