Google Tweaks Search to Avoid EU Fines, Critics Say It Hurts Consumers

Google is overhauling its European search results to comply with EU competition rules and avoid further financial penalties. The changes follow a €460 million ($534 million) fine imposed on Google in July for favoring its own services in areas including shopping, hotels, transportation, and sports.

The penalty was issued under the bloc's Digital Markets Act (DMA), which places additional competition requirements on some of the world's largest technology platforms. The European Commission gave Google 60 days to bring its practices into compliance or face recurring penalties that could reach as much as 5% of the company's worldwide turnover.

Under the redesigned results, specialized search and comparison services will receive more prominent placement. This is expected to benefit platforms such as Expedia and Booking.com at the expense of individual businesses in travel, hospitality, and other industries.

Google argues that the regulatory remedy gives online intermediaries an advantage rather than creating more competition. The company's senior vice president for knowledge and information, Nick Fox, stated that the changes will worsen the experience for European users while benefiting intermediaries at the expense of local businesses.