By Foo Yun Chee
BRUSSELS (Reuters) - Google plans to make adjustments to displaying search results on its platform in Europe after some smaller rivals complained about lower traffic to their sites following previous tweaks by the Alphabet (NASDAQ:GOOGL) unit and as EU regulators probe whether the company breached EU tech rules.
Under the EU Digital Markets Act (DMA), Google is prohibited from favouring its products and services on its platform. The Act kicked in last year and is aimed at reining in the power of Big Tech.
The world's most popular internet search engine has since then tried to address conflicting demands from price-comparison sites, hotels, airlines and small retailers, among others. The latter three groups said their direct booking clicks have fallen by 30% due to recent Google changes.
"We have therefore proposed more changes to our European search results to try to accommodate these requests, while still meeting the goals set by the DMA," Google's legal director, Oliver Bethell, said in a blog post on Tuesday.
Changes include introducing expanded and equally formatted units allowing users to choose between comparison sites and supplier websites, new formats letting rivals show prices and pictures on their websites as well as new ad units for comparison sites.
"We think the latest proposal is the right way to balance the difficult trade-offs that the DMA involves," Bethell said.
For its search results in Germany, Belgium and Estonia, Google also plans to remove the map showing the location of hotels and the results beneath the map, similar to its old "ten blue links" format from years ago, as part of a short test to gauge users' interest.
"We're very reluctant to take this step, as removing helpful features does not benefit consumers or businesses in Europe," Bethell said.
The European Commission said it is currently assessing Google's compliance proposals. Google has been in the Commission's crosshairs since March. DMA violations can cost companies as much as 10% of their annuals global turnover.
British price comparison site and Google critic Kelkoo rejected the proposal.
"They do not resolve the obvious preferential treatment of Google's own CSS (Comparison Shopping Services) within the search results, with rivals either limited to far less favourable display (if they even appear) or forced to act as customers of Google rather than competitors," Kelkoo Chief Executive Richard Stables said.
The German Hotel Association said a return to blue links as demanded by booking and comparison sites would be less transparent and less convenient for consumers.
"For hotels, particularly independent operators and small businesses, the return to basic blue links makes it harder to compete. It diminishes their visibility and increases dependence on third-party platforms that demand significant commissions, undermining their profitability and sustainability," it said.
Lobbying group eu travel tech, whose members include Booking (NASDAQ:BKNG).com, Amadeus (BME:AMA), Airbnb and the Expedia (NASDAQ:EXPE) Group, said Google has yet to address its concerns and urged the Commission to charge the company with DMA breaches.
Google "seems to be stepping away from exploring innovative and impactful solutions that could resolve the concerns raised by the Commission and third parties," the group said.