EU fines Google for favouring its own services
The European Commission has determined that Google favoured its own services in search results, including hotel and travel offers. The decision could change the way travellers in Europe find and compare tourist services.
The European Commission has fined Google a total of €890 million for two infringements of the Act digital markets, known as the DMA. These are the first fines Google has received under that European regulation.
The majority of the case relates directly to the internet search market. The Commission considers that Google displayed its own services more prominently than those of competing platforms. This was particularly the case in the categories of shopping, hotels, travel, and sports content.
Google's services were getting a better position
A penalty of €460 million was imposed for favouring its own services within Google Search. According to the Commission's reasoning, Google's results often appeared at the top of the page. Additionally, they frequently came with richer visual elements, filters, and other functions that were not available to competing services on equal terms.
For the tourism industry, it's not just a regulatory issue. Visibility in search results strongly influences traffic to online travel agencies, hotel platforms, metasearch engines, and carriers. Therefore, changes in how results are displayed could open up more space for specialised services. It could also increase the importance of investing in organic visibility and brand recognition.
The second penalty relates to Google Play
An additional €430 million in fines is linked to Google Play rules. The Commission concluded that Google did not allow developers to freely direct users to other purchasing channels. This includes their own websites and alternative app stores.
These restrictions are particularly important for companies that sell digital services through mobile applications. In tourism, these could be applications for bookings, transport, travel management, or additional services during a stay.
Google announces it will challenge the decision
Google claims that European regulations could weaken functionalities that show users real-time prices and availability for hotels, flights, and restaurants. The company also warns of potential consequences for the security of purchases made outside of Google Play.
Google must now cease its disputed practices and comply with the DMA. The deadline for implementing the decision is 60 days. Travel companies It will be crucial to monitor whether the new rules genuinely lead to a more equitable presentation of offers. It is also important to monitor whether the changes will merely lead to a new redesign of Google's results.
