The European Commission has said Google-parent Alphabet has failed to comply with the Digital Markets Act (DMA) regarding Google Search.
The regulator has sent Alphabet, which was designated a gatekeeper under the act in July 2023, its preliminary findings that “certain features and functionalities of Google Search treat Alphabet’s own services more favorably compared to rival ones.”
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The DMA states services must be ranked in a “transparent, fair and non-discriminatory way,” the Commission said in a statement.
Google announced a series of updates to search in Europe late last year in a bid to comply with the act.
However, the European regulator said that following an investigation and feedback from third parties, it believes Alphabet still “self-preferences its own services.”
The Commission said:
- Alphabet treats its own services, such as shopping, hotel booking, transport or financial and sports results, more favorably in Google Search results than similar services offered by third parties.
- Alphabet gives its own services more prominent treatment compared to others by displaying them at the top of Google Search results or on dedicated spaces, with enhanced visual formats and filtering mechanisms.
In a blog post responding to the Commission's findings, Google said further changes to its search "will hurt European businesses and consumers, hinder innovation, weaken security and degrade product quality."
EU Travel Tech, the association representing travel technology companies including online travel agencies and distribution specialists, welcomed the Commission’s finding.
“This is an important step forward in ensuring that Google ceases treating its own services more favorably than those of third parties,” a statement said.
“Today’s announcement also reaffirms the Commission’s commitment to ensuring fair competition and consumer choice in digital markets.”
The travel tech organization also said Google’s parent company is evading its “obligations by engaging in compliance discussions as a delaying tactic, making proposals which did not bring it closer to compliance.”
“The preliminary findings are a strong signal to Alphabet that its approach needs to change radically,” said Emmanual Mounier, secretary general at EU Travel Tech.
“This is a turning point for the DMA and we look forward to the conclusion of the investigation. By ending Google Search self-preferencing, it can demonstrate that it can deliver real benefits to all digital businesses, including US ones, as well as European consumers.”
Booking Holdings, which was designated a gatekeeper under the act in May 2024, said in November that it was compliant with its DMA obligations. The Commission is now reviewing a report submitted by the online travel giant regarding its compliance measures.