
Google on Tuesday rolled out changes to its online search results
in Europe to satisfy European Union (EU) antitrust regulators, but said the change will degrade user experiences that could cost businesses in time and money.
The statement from Google
Senior Vice President of Knowledge & Information Nick Fox was provided to Reuters.
Google is complying with an order from the European Commission (EC).
Fox
described the change das the the biggest quality drop in the 29-year history of its search engine.
The EU said the changes will level the playing field for companies that serve up
in Google Search results.
The redesigned results elevate price-comparison services like Expedia and Booking.com in travel and hospitality categories such as hotels, airlines, and
restaurants.
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This update shifts digital search results in Europe, creating a new set of companies that will succeed in search.
For advertisers — especially those in
hospitality, travel, and local services — this structural change under the EU’s Digital Markets Act (DMA) means they must completely rethink their search
strategy.
Radu Oncescu, a social media expert in Romania, identified a disclaimer in August.
He wrote on X: "Google is now displaying a new disclaimer for hotel booking prices: 'This price was customised by the booking
partner based on factors such as your device type."
Some also report that the search carousel no longer features dynamic, real-time pricing data, reducing immediate consumer intent
conversion, which could hurt advertisers in the European Union.
In the new layout, Google features a scrollable section of local businesses. A carousel of hotels, airlines and
restaurants, for example, will sit below them with key features.
The tension between Google and online travel agencies (OTA) highlights a multibillion-dollar battle for control over
digital space in travel and hospitality.
The two have been fighting Google for years, and the rivalry stems from a balance between search traffic dominance, advertising spend and
monetizing the platforms.
In the redesigned layout, a single specialized search engine is featured prominently at the top, with two additional ones below it showing less detail, and a carousel
of businesses beneath those. Google said it has removed live pricing data from that scrollable section.
Google told Reuters that internal tests across millions of European users revealed
frustration, with many people searching again because the initial results failed to surface what they were looking for.
The company also added that DMA compliance measures had reduced free
direct-booking referrals to European businesses by 30%, and warned that the new adjustments are likely to deepen that decline.
The changes are a result of the EC fining Google 460
million euro, or $543 million, in July for preferring its own services in searches for travel and shopping, although Google claimed that the change would result in a massive reduction in search
quality.