🌐 Google’s “blue links” experiment ends
Google recently concluded a test in the EU where hotel search results showed simple “blue links” instead of enriched data like photos, prices, or maps. The change aimed to address Digital Markets Act (DMA) compliance complaints about self-preferencing but caused a 10% drop in hotel traffic. Google claims this approach didn’t significantly boost visits to rival comparison sites either. The test lasted a few months, covering select EU markets, and is now at the center of broader debates about balancing user experience with regulatory adherence.
💼 Digital Markets Act and the stakes
The EU’s DMA, effective March 2024, imposes strict rules to ensure fair competition in digital markets. Google faces scrutiny for embedding its services in search results, which critics say harms rivals. Non-compliance risks hefty penalties, up to 10% of Google’s global revenue. Regulators also have an ongoing probe into Google’s adherence to the law. This adds pressure, as Apple and Meta have already made changes following investigations. Google argues that meeting these requirements forces a degraded search experience, labeling the DMA’s demands as “overreach.”
🔍 Google’s lobbying intensifies
Google continues to challenge the DMA’s interpretation, arguing its helpful features benefit users. In a recent blog, Oliver Bethell, Google’s legal director, warned against a “lose-lose situation” where users lose valuable tools. The blog claims that reverting to simpler designs could increase consumer prices as traffic shifts from hotels to intermediaries. Google emphasizes its significant adjustments but argues for “balanced” compliance, framing regulations as a consumer disadvantage rather than a fairness enhancer. Public and regulatory opinions remain divided.
📜 EU’s next steps and the big question
While DMA cases against Apple and Meta saw preliminary findings by summer 2024, Google’s case remains unresolved. This delay signals the complexity of applying fair competition rules to a dominant search tool. The EU Commission has not publicly commented on Google’s latest statements. As discussions continue, the Commission must weigh the trade-offs between regulation and user experience. A resolution is crucial as the outcome could reshape how tech giants operate in Europe. Google hopes to avoid the “blue links” model becoming a regulatory mandate.
Will Google’s stance sway EU’s strict regulations?
