Google Says EU Rules Are Making Search Worse

Google has changed its online search results in Europe to comply with EU antitrust regulators and the Digital Markets Act (DMA). However, the tech giant warns that the changes represent the biggest decline in the quality of its search service in its 29-year history.

The new system increases the visibility of specialized search and comparison services such as Booking.com and Expedia at the expense of direct links to businesses in sectors including hotels, airlines and restaurants. The revamped search results also remove features including real-time pricing.

The changes follow a €460m ($534m) fine in July for favoring Google's own services in shopping, hotel, transport and sports search results. The European Commission gave the company 60 days to comply with the DMA or risk periodic penalty payments of up to 5% of its worldwide turnover. Google Senior Vice President Nick Fox argued that the changes worsen the user experience and benefit intermediaries.

Google said previous changes made to comply with the DMA led to a 30% drop in free, direct booking traffic to European businesses.

Google has accumulated €10.38bn ($12.07bn) in EU antitrust penalties during its nearly two-decade dispute with regulators, drawing criticism from US President Donald Trump. The EU also imposed a separate €430m ($500m) fine in July over restrictions preventing app developers from directing users free of charge to cheaper offers on rival app stores or websites. Google said it has already updated its external offers program.

(Reuters, max)