Google proposes to display competing shopping and travel platforms at the top of search results to avoid EU fines. The company hopes this will enable it to comply with the Digital Markets Act and avoid billions in penalties.
This is according to Bloomberg, citing sources. The Digital Markets Act came into force last year to prevent large tech companies from abusing their power. Platforms are not allowed to favor their own services or combine personal data between different services. Violations will be punished with fines of up to 10 percent of annual revenue, or 20 percent in the case of repeat offenses, according to EU regulations.
This threat comes after Google lost a lawsuit last year over a €2.4 billion fine for squeezing out rivals. In March, the European Commission again warned Google that it risked fines under the Digital Markets Act for favoring its own services, such as Google Flights.
New approach in response to threat
Google is now proposing to add a box at the top of search results with ranked options from price comparison sites. Users can link to competitors such as Expedia or Booking, or navigate directly to hotels and airlines. The most relevant platform will be given priority, while other options will remain available via a drop-down menu.
The company previously attempted to satisfy the Commission by showing EU users more links to comparison sites. However, the current proposed change places competitors prominently at the top, exactly where Google’s price comparison features currently appear.
Tip: Google Search under pressure: UK watchdog wants more measures