Google claims that highlighting travel comparison sites under the Digital Markets Act has led to a 30% drop in direct hotel and airline bookings
Google has announced that it will remove some of the features that display detailed information in search results in accordance with the EU's Digital Markets Act (DMA), which aims to keep online platforms fair and promote competition by regulating companies with strong economic positions. Google has complained that it is caught between 'promoting large price comparison sites and small businesses.'
An update on our compliance with the DMA
Google to tweak search results in Europe after rivals complained | Reuters
Google to test plain 'blue link' results for hotel searches in EU markets in latest DMA twist | TechCrunch
https://techcrunch.com/2024/11/26/google-to-test-plain-blue-link-results-for-hotel-searches-in-eu-markets-in-latest-dma-twist/
Google Testing More DMA Changes In Europe Including Removing Maps For Hotel Results
https://www.seroundtable.com/google-dma-tests-maps-hotel-results-38481.html
The DMA regulates companies with strong market positions, with the aim of correcting unfair contract terms that abuse market power and giving new companies a chance to compete. The companies subject to the DMA are six companies: Alphabet, the parent company of Google, as well as Apple, Amazon, ByteDance, Meta, and Microsoft. If the companies do not comply with the recommendations made under the DMA, they may be fined up to 10% of their annual turnover.
One of the industries that complained about Google's market dominance was travel comparison sites such as Booking.com and Airbnb. To address the complaints from travel comparison sites based on the DMA, Google made more than 20 changes, including introducing dedicated units and formats to make comparison sites stand out in categories such as air tickets, hotels, and shopping. However, this resulted in the loss of 'useful features' such as maps displayed in search results, which Google said 'has had a negative impact on the user experience in the EU.'
In particular, Google claims that it has been caught between comparison sites and retailers, with traffic to sites directly operated by airlines and hotels dropping by 30% as a result of giving prominence to the major comparison sites. Despite this, the major comparison sites are pushing for further reforms.
To address this situation and achieve the DMA goal, Google proposed a new design for its search results. The proposals were: 'A unit that lets users choose between comparison sites and retailers when searching for products, restaurants, hotels, etc.,' 'A new format that lets comparison sites and retailers display more information, such as prices and photos, that they have on their websites,' and 'A new ad unit for comparison sites.' A design that seems to be related to this proposal has also been confirmed in the wild.
Additionally, Google is
'While many stakeholders are happy with our changes, some sites continue to push for more, such as banning more than simple links, which would prevent them from displaying useful information like prices and ratings. Removing useful functionality does not benefit European consumers or businesses. We believe our latest proposal is the right way to balance the difficult trade-offs that come with the DMA. We will comply with the law and hope that our proposal will help us reach a useful solution,' Google said.
Richard Stables, CEO of UK price comparison service Kelkoo, rejected Google's proposal, saying: 'It doesn't address the obvious preferential treatment of Google's own comparison service in search results, and rivals are placed at a much disadvantage if they even show up at all. It forces us to act as Google's customer, not a competitor.'
Meanwhile, the German Hotel Association expressed concern about a return to links, stating: 'Link-style displays, as required by booking and comparison sites, are less transparent and convenient for consumers. In particular, for independents and small businesses, simple links make it more difficult to compete. They reduce brand recognition and increase dependence on agencies who demand large commissions, undermining profitability and sustainability.'
Related Posts:
in Web Service, Posted by log1p_kr