Google and EU Regulators: A New Milestone in the Ongoing Conflict

The long-brewing conflict between Google and EU regulators has reached a new milestone. The European Commission has officially issued preliminary findings that Google has violated the Digital Markets Act (DMA) in two key areas that directly impact digital marketers and app developers.

What’s Happening with Google Search?

Despite Google’s algorithm tweaks over the past year, EU regulators aren’t satisfied. They claim Google still gives preferential treatment to its verticals, such as Google Shopping, Hotels, Flights, and other specialized results. The Commission called out Google for displaying its services “at the top of Google Search results or on dedicated spaces, with enhanced visual formats and filtering mechanisms” that third-party services don’t enjoy. If you’ve been wondering why your clients’ listings seem pushed down by Google’s products, EU regulators are validating those concerns.

Google Play Also Under Fire

In a separate finding, the Commission claims Google Play doesn’t allow app developers to freely direct users to alternative channels for better deals or direct purchases. For marketers working with apps or managing app-based clients, this could eventually lead to new opportunities to reach users outside Google’s ecosystem without the steep Play Store fees.

What This Means for Digital Marketers

If the findings are confirmed and Google is forced to make changes, we could see significant shifts in search visibility and ranking opportunities:

• More prominent placement for third-party comparison sites in travel, shopping, and financial verticals
• Reduced visual emphasis on Google’s services
• Potentially more organic visibility for businesses currently competing with Google’s featured elements
  For app marketers, we might see new options for communicating with users about direct purchase options and alternatives to Google Play’s payment system.

Google Pushes Back

In a blog post, Google Senior Director of Competition Oliver Bethell argued that the Commission’s findings would “hurt European businesses and consumers, hinder innovation, weaken security, and degrade product quality.” Google claims that changes already implemented due to EU regulations have caused European businesses to lose up to 30% of traffic, with users “resorting to clunky workarounds” to find what they need. The company specifically highlighted travel search as an example: “When we can’t show travel results that take people directly to airline sites, they typically end up with a more expensive ticket because airlines have to pay commissions to intermediary websites.” Regarding the Play Store findings, Google contends there’s a “false choice between openness and security.” It argues that restrictions protect users from malware and fraud while maintaining Android as an open platform with “50 times more apps than iOS.”

The Bigger Picture

This escalation follows the DMA’s implementation in March 2024, which designated Google as a “gatekeeper” alongside other tech giants. The law specifically targets large platforms that serve as critical intermediaries between businesses and consumers. If Google fails to address the Commission’s concerns, it could face penalties of up to 10% of its global annual revenue. This prospect will likely motivate changes to how search results appear in Europe.

Conclusion

The conflict between Google and EU regulators is ongoing, with significant implications for digital marketers and app developers. As the situation develops, it’s essential to stay informed about the potential changes and their impact on search and app marketing strategies. The European Commission’s findings and Google’s response highlight the complexities of regulating large tech platforms and the need for a balance between innovation, security, and fair competition. As the story unfolds, we can expect to see significant shifts in the digital landscape, and it’s crucial to be prepared for the changes that lie ahead.