[EUROPE] Google's proposed changes to its search result format have garnered support from Airlines for Europe (A4E), a prominent airline lobbying group. This endorsement comes as Google works to comply with the European Union's Digital Markets Act (DMA), a legislation aimed at curbing anti-competitive practices in the tech industry.
Google's Efforts to Comply with the DMA
Google has been working diligently to adapt its search result format to meet the requirements of the DMA. The tech giant has announced several updates in recent months, balancing the demands of various sectors including airlines, price comparison websites, and small retailers. These changes are crucial for Google, as non-compliance with the DMA could result in hefty fines of up to 10% of the company's global annual turnover.
The latest adjustments, revealed last month, include a horizontal layout for airlines and comparison sites. This new format aims to create a fairer search experience, addressing concerns about Google favoring its own services in search results.
Airlines for Europe Backs Google's Proposal
Airlines for Europe, representing major carriers like Air France-KLM and Lufthansa, has expressed support for Google's proposed changes. In a letter to the European Commission dated December 20, 2024, A4E stated, "In the spirit of finding a DMA-compliant solution in a timely fashion, the airline industry has shown it is willing to compromise".
The airline group specifically endorsed the horizontal layout featuring same-sized boxes for airlines and comparison sites in search results. They also approved of using the color blue to distinguish these elements from others on the page.
Key Features of Google's Proposed Changes
Horizontal Layout: The new format uses equally-sized boxes for each airline and comparison site, creating a more balanced presentation of options.
Color Coding: The use of blue to distinguish airline and comparison site listings from other elements on the page.
Expanded Units: These allow users to choose between results that lead to comparison sites and those that direct them to supplier websites when searching for products, restaurants, flights, or hotels.
New Formats: These enable comparison sites and suppliers to display more information about their offerings, including prices and pictures.
New Ad Units: Specifically designed for comparison sites to provide additional opportunities for competitors to reach users.
Concerns Raised by Airlines for Europe
While A4E has shown overall support for Google's proposals, they have raised two specific concerns:
Price Accuracy: The group insists that prices displayed in search results should match those in the clickable boxes to avoid consumer confusion.
Date Specificity: A4E argues against Google's proposal to use purely indicative dates rather than specific travel dates. They believe this would "downgrade their experience significantly" as exact dates are crucial for flight bookings.
Google's Backup Plan
In the event that Google cannot reach an agreement with airlines and price comparison sites, the company has stated it may revert to its older search result format. This would mean returning to the simpler model of 10 blue links, which was the standard format before Google began emphasizing its own services in search results.
Impact on Small Businesses and Consumers
While the proposed changes aim to create a more level playing field, there have been some unintended consequences. Google has reported that some of the initial changes have negatively impacted small businesses:
"While many of these changes have benefited large online travel aggregators and comparison sites, there's a different set of businesses that are unfortunately losing traffic as a result: it's now harder for airlines, hotel operators, and small retailers to reach customers. They have reported that free direct booking clicks are down as much as 30% since we implemented our original changes".
This highlights the delicate balance Google must strike between complying with the DMA and ensuring fair visibility for businesses of all sizes.
The Broader Context of DMA Compliance
Google's efforts to comply with the DMA extend beyond just search result formats. The company has made over 20 modifications to Google Search, including the introduction of dedicated units and formats to boost the prominence of comparison sites for free in categories like flights, hotels, and shopping.
Oliver Bethell, Director of Legal at Google, emphasized the company's commitment to compliance: "Over the past year, we have made many changes to comply, including significantly redesigning certain features and completely removing others in Europe".
The Road Ahead
As Google continues to refine its search result format, the company remains open to further adjustments. The support from Airlines for Europe is a positive step, but challenges remain in satisfying all stakeholders while maintaining a useful and innovative search experience.
Google has expressed reluctance to remove helpful features, stating, "We're very reluctant to take this step, as removing helpful features does not benefit consumers or businesses in Europe". However, the company is committed to finding a solution that complies with the law while continuing to provide European users and businesses with access to helpful technology.
Google's proposed changes to its search result format, particularly those affecting flight and travel-related searches, represent a significant shift in how information is presented to users. The support from Airlines for Europe is a crucial endorsement, indicating that the tech giant is moving in the right direction to comply with the EU's Digital Markets Act.
However, the journey towards full compliance is ongoing. Google must continue to balance the needs of various stakeholders - from large airlines to small retailers, from price comparison sites to individual consumers. The challenge lies in creating a search experience that is fair, transparent, and beneficial to all parties while still maintaining the innovation and usefulness that Google Search is known for.
As the digital landscape continues to evolve, these changes in search result formats will likely have far-reaching implications for how businesses and consumers interact online. The outcome of Google's efforts to comply with the DMA could set precedents for other tech companies and shape the future of online search and e-commerce in Europe and beyond.
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