Google cautions about diminished quality as it overhauls search results in Europe to evade EU penalties

Alphabet's Google on Tuesday implemented modifications to its online search results in Europe to comply with EU antitrust regulators. The company stated that these changes will diminish the user experience and increase expenses for European businesses.

The changes represent the most significant decline in service quality at the world's leading internet search engine in its 29-year history, a Google official informed Reuters.

Google stated that the EU presented the changes as a way to create a fairer environment for companies to advertise. However, Google stated that it observes that, in reality, the changes benefit price comparison sites, also referred to as vertical search services (VSS), associated with sectors such as hotels, airlines, and restaurants, including Expedia and Booking.com. They gain greater visibility in search results compared to companies in those sectors that are only listed with a link to their websites, telephone numbers, and addresses.

The U.S. tech giant faced a €460 million ($534 million) fine in July for prioritizing its own services in areas such as shopping, hotels, transport, and sports results in search results, violating the EU's Digital Markets AAct, which aims to curbthe influence of Big Tech.


The European Commission has provided a 60-day timeframe for compliance with the DMA, warning of potential periodic penalty payments reaching up to 5% of total worldwide turnover for non-compliance.

The updated search results will feature a prominent specialized search engine at the top of the page, accompanied by two additional options with less information. Below these, a carousel will showcase hotels, airlines, and restaurants, removing essential features like real-time prices. Google's algorithm will determine the rankings. "To comply with DMA requirements, we're making significant changes to Search in Europe," Nick Fox, Google's senior vice-president, knowledge & information, stated in a communication to Reuters. "These changes negatively impact the user experience for Europeans—elevating online intermediaries at the cost of local businesses and eliminating useful features that people depend on daily. “Users outside the EU will not be affected by these changes,” he stated.

Google reported that previous adjustments made to adhere to the DMA resulted in a 30% decline in free, direct booking traffic to European businesses, and the most recent changes are anticipated to impact them further.

The company stated that it has conducted tests on the changes with millions of users in Europe, revealing a significant level of dissatisfaction as they are required to retype queries to locate what they seek.

Google has accumulated a total of €10.38 billion in EU antitrust penalties over the course of nearly two decades.

The EU fines faced criticism from U.S. President Donald Trump, who threatened to initiate an investigation into the bloc's alleged "robbing" of American companies.