In some countries, there is a heated discussion about implementing new regulations that target a few major technology services. These specific laws aim to foster competitive digital markets but may come with trade-offs which could lead to higher prices and limited options for consumers and businesses. The concerns surrounding these changes are being raised following adjustments made to adhere to Europe’s recently enacted Digital Markets Act (DMA).
Supporting businesses and consumers
Due to the DMA, we have been required to eliminate certain Google Search features related to flights, hotels, and local businesses. This means that users searching for a flight in Europe will no longer see comprehensive information about airlines, flight schedules, and prices. While this change benefits a select number of online travel aggregators, it negatively impacts a wider range of airlines, hotel owners, and small businesses by making it harder for them to directly reach customers.
These Google Search features were initially introduced to assist consumers in accessing accurate information easily. However, now there is more complexity when searching for a flight on Google in Europe, increasing the risk of users ending up on a travel website that advertises a low fare that suddenly increases before booking with a message like “this fare is no longer available.”
Initial observations on DMA compliance
Here are some key observations from countries where DMA changes have been implemented:
- There has been a rise in traffic to a small group of successful intermediary services while larger businesses such as airlines, hotels, local shops, and restaurants have seen a significant decrease in engagement.
- Hotels have reported a decline of up to 30% in direct booking clicks since the compliance changes were made. These businesses are now reliant on a few intermediaries that usually charge high commissions, whereas traffic from Google was previously free. European airlines and local enterprises have echoed similar concerns.
- Consumers have shared negative feedback regarding changes in how Google Maps are displayed in Search. Many European users have raised concerns on forums and message boards about the absence of a useful Google Maps tab on the Search results page.
Striking a balance and prioritizing consumers
Our focus has always been on enhancing Google Search to help users find information quickly and efficiently. We introduced Google Images to display images directly, not just links. Google Maps was launched to facilitate finding local businesses, not just their addresses mentioned on websites. Our goal is to enable direct connections with airlines, hotels, and merchants, benefiting consumers and small businesses by saving time and money and fostering competition.
Rolling back these advancements through regulations signifies a significant change in competition policy. It is essential for countries considering such rules to weigh the potential negative impacts, especially on small businesses that may not have a say in the regulatory process.
We are committed to transparency regarding our DMA compliance obligations and the impact of strict product mandates. We believe in a consumer-centric approach that allows users to choose the services they prefer, rather than mandating Search redesigns to benefit a select few companies.
