Google Concludes EU ‘Blue Links’ Search Test, Advocates for Flexible DMA Compliance
Google has officially ended its experimental rollout of basic “blue link” search results for hotel queries in select EU markets—a move tied to ongoing debates about compliance with the Digital Markets Act (DMA). The test replaced visually rich results (featuring hotel thumbnails, pricing, and maps) with traditional text-based links, sparking industry-wide discussions about regulatory impacts on user experience and competition.
Key Findings from Google’s Test
In a recent blog post, Oliver Bethell, Google’s Director of Legal, highlighted two critical outcomes:
- Traffic Decline for Hotels: Reverting to blue links reduced direct hotel bookings by over 10%, potentially disadvantaging smaller accommodation providers.
- Minimal Impact on Aggregators: Traffic to third-party comparison sites remained largely unchanged, contradicting claims that richer results unfairly disadvantage compe*****s.
The DMA’s Broader Implications
The DMA, enacted in March 2024, aims to curb anti-competitive practices by tech “gatekeepers.” For Google, this includes allegations of self-preferencing—embedding features like hotel maps that could divert users from rival services. Violations carry fines of up to 10% of global revenue, with the European Commission already investigating Google’s compliance.
Google’s Defense: Balancing Regulation and User Experience
Google frames the DMA as a trade-off between regulatory adherence and search quality:
- Argues that stripping rich features degrades UX, pushing EU search “back to the Web 1.0 era.”
- Claims prior DMA adjustments have already shifted traffic to intermediaries, raising consumer costs.
- Warns of a “lose-lose situation” if further feature removals are mandated.
Regulatory Standoff: What’s Next?
The EU has yet to rule on Google’s DMA compliance, unlike parallel cases involving Apple’s App Store and Meta’s ad model, where preliminary decisions were reached faster. Google’s lobbying for a “balanced solution” suggests prolonged negotiations ahead.
Why This Matters
- For Businesses: Hoteliers and aggregators face uncertainty over traffic dynamics.
- For Users: Potential erosion of convenient search features in the name of fairness.
- For Regulators: The challenge lies in enforcing competition rules without unintended consequences.
“We look forward to discussing these findings with the European Commission,” Bethell stated, signaling ongoing dialogue.
The Commission has been contacted for comment on Google’s latest data. Meanwhile, the tech giant’s strategic framing of the DMA as harmful to consumers underscores its efforts to shape a favorable outcome.
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