Alphabet’s Google has introduced major changes to its online search results in Europe, saying it is complying with European Union antitrust requirements at the cost of a poorer user experience and higher costs for European businesses.
Google described the changes as the largest reduction in the quality of service in the 29-year history of the world’s most popular internet search engine. The company said the European Union had presented the measures as an attempt to create a more level playing field for businesses competing for visibility on Google.
Google, however, argues that the changes will disproportionately benefit price comparison websites, also known as vertical search services, operating in sectors such as hotels, airlines and restaurants. Services including Expedia and Booking.com are expected to receive greater prominence in search results than businesses that appear with only links to their own websites, telephone numbers and addresses.
The changes follow a €460 million ($534 million) fine imposed on Google in July for allegedly favouring its own services in shopping, hotels, transport and sports search results. The penalty was issued under the European Union’s Digital Markets Act, which seeks to curb the market power of major technology companies.
The European Commission gave Google 60 days to comply with the DMA or face periodic penalty payments of up to 5% of its total worldwide turnover.
Under the revised search system, one specialised search engine will appear prominently at the top of the results page, followed by two others displaying fewer details. A separate carousel featuring hotels, airlines and restaurants will appear below, but key information such as real-time prices will be removed.
The rankings will be determined by Google’s algorithm, leaving the company responsible for implementing a system it says was imposed on it by European regulators.
“To comply with DMA requirements, we’re making significant changes to Search in Europe,” Nick Fox, Google’s senior vice-president, knowledge & information, said in a statement.
“These changes degrade the user experience for Europeans — boosting online intermediaries at the expense of local businesses, and removing helpful features people rely on every day. Users outside the EU will not be impacted by these changes,” he said.
Google said previous changes introduced to comply with the DMA had already resulted in a 30% decline in free, direct booking traffic to European businesses. The company expects the latest measures to place further pressure on those businesses.
The company also said it had tested the revised search experience with millions of European users and found a high level of dissatisfaction. According to Google, users were frequently required to retype queries to find the information they were seeking.
The latest dispute is part of a wider European regulatory campaign against Google. In July, EU regulators imposed a separate €430 million fine over restrictions that prevented app developers from directing users free of charge towards cheaper offers on rival app stores or websites.
Google said it had already updated its external offers programme in response to the requirements affecting Google Play. The company also announced changes in August last year intended to make it easier for app developers to direct customers to alternative channels and select a fee model.
The search dispute adds to a long-running confrontation between Google and European antitrust authorities. The company has accumulated total EU antitrust penalties of €10.38 billion during its nearly two-decade battle with European regulators.
The fines have also become a point of contention in transatlantic politics. US President Donald Trump has criticised the EU penalties and threatened to launch an investigation into what he described as the bloc’s “robbing” of American companies.
For Google, the European search changes therefore represent more than a technical adjustment to how search results are displayed. They mark another major test of how far regulators can reshape the services offered by one of the world’s most powerful technology companies — and how much users and businesses will ultimately pay for that intervention.
