Google warns of lower quality as it revamps Europe search results to avoid EU fines

Alphabet's Google announced significant changes to its European search results on Tuesday in response to EU antitrust regulators' demands. The changes, which will likely diminish user experience and increase costs for European businesses, are viewed by Google as the most substantial reduction in service quality since the search engine's inception 29 years ago.

Google claims the EU's objective is to create a more level playing field for businesses displayed on Google, but the company believes the modifications will actually benefit price comparison sites like Expedia and Booking.com. These sites will receive greater prominence in search results compared to businesses that merely have links to their websites, phone numbers, and addresses.

In July, Google was fined €460 million for favoring its own services in shopping, hotels, transport, and sports results in search results, violating the EU's Digital Markets Act. The European Commission granted Google 60 days to comply or face periodic penalty payments up to 5% of its global revenue. The revised search results will feature one specialized search engine at the top, followed by two others with less information.

Below them, a carousel of hotels, airlines, and restaurants will display key details like real-time prices, which will be determined by Google's algorithm. Google's senior vice-president, Nick Fox, stated in a statement to Reuters that the changes degrade the user experience for Europeans, benefitting online intermediaries at the expense of local businesses, and removing helpful features.

The company expects the modifications to impact European businesses, as past adjustments in compliance with the DMA led to a 30% decline in free, direct booking traffic to these businesses.