Google's Search Overhaul in Europe Fuels Concerns Over Compliance Costs

Alphabet Inc.'s Google is making significant changes to its Search product in Europe as part of efforts to comply with the EU's Digital Markets Act (DMA). The move comes after a €460 million fine was imposed on Google in July for favoring its own services in search results. The company has introduced a new format, giving prominence to specialized search engines at the top of the page, followed by two others with less information.

According to Google, this change will give greater visibility to price-comparison and other vertical search services, potentially affecting hotels, airlines, restaurants, and other businesses that rely on direct bookings. The company also expects these changes to result in a decline in free, direct booking traffic to European businesses by up to 30%, surpassing the 30% decline seen with previous DMA-related changes.

Google has argued that complying with the DMA requirements will make Search less useful for European consumers and increase costs for businesses. The company has tested the new format with millions of European users, finding high levels of dissatisfaction, including users having to retype searches to find what they wanted.