On September 8, Google updated its search engine in Europe to prioritize third-party vertical search services, such as shopping and travel tools, over its own integrated features. This redesign follows a €460 million fine from the European Commission and requirements under the Digital Markets Act (DMA).
The European Commission imposed the €460 million penalty on July 23 for self-preferencing in vertical search results. This was part of a larger €890 million total, which included an additional €430 million fine related to Google Play Store practices.
The compliance deadline is September 21. Failure to meet these requirements could lead to daily fines of up to 5% of Google's global turnover. For reference, Alphabet reported annual revenue exceeding $300 billion last year.
Google claims that previous DMA-related adjustments led to a 30% drop in free direct bookings for businesses like hotels and restaurants. The company argues that replacing integrated tools with links to comparison sites increases user friction and benefits large intermediaries.
The Digital Markets Act, adopted in 2022, targets 'gatekeepers' including Google, Apple, Amazon, Meta, and Microsoft. The European Commission will continue to monitor Google's implementation to ensure fair competition.