The parent company of Google, Alphabet, is preparing to launch modifications to how search results appear in an effort to prevent substantial penalties from European Union regulators, according to someone familiar with the situation who spoke Wednesday.
The modifications come as the technology giant faces accusations of giving preferential treatment to its own services when users search for accommodations, air travel, and dining options, potentially violating the Digital Markets Act.
Since receiving formal charges in March of last year, Google has developed multiple proposals aimed at satisfying both competitors and European Union officials. However, none of these proposals have been put into practice after rival companies argued the suggested measures were inadequate.
The dispute centers around Google’s relationship with vertical search services that specialize in specific industries like hospitality, aviation, and food service, as well as individual businesses operating in these sectors.
According to the source, the upcoming modifications will display results from both vertical search services and Google’s own offerings, with the highest-ranking specialized search engines appearing prominently by default.
Businesses in the hotel, airline, restaurant, and transportation industries that provide live information through data feeds will appear either above or below the list of vertical search platforms.
The source indicated these modifications will be implemented throughout Europe in the near future, starting with accommodation searches before expanding to include flights and additional services. No additional specifics were provided.
The European Commission chose not to provide a statement regarding the matter.
These adjustments may help satisfy the European Commission, which serves as the EU’s competition enforcement body. Companies found in violation of the Digital Markets Act face penalties reaching up to 10% of their worldwide annual earnings.
Since 2017, Google has accumulated 9.71 billion euros (equivalent to $11.5 billion) in penalties for various competition law violations throughout Europe.
The European Union’s intensified efforts to regulate major technology companies for allegedly eliminating competition has increased friction with the United States, leading to threats of tariffs and travel restrictions against a former European Commission official who led significant digital services legislation requiring online platforms to increase their efforts against illegal and harmful content.
