Report from Reuters
In Brief – Google has proposed more changes to its search results to improve the visibility of “vertical” search competitors, such as those specializing in hotels, airfares, or local services, aiming to resolve the European Commission’s preliminary determination that the company was violating the Digital Markets Act (DMA). Vertical search services (VSS) have long complained that Google’s general search service penalizes vertical competitors and preferences the giant’s own vertical offerings. The DMA prohibits gatekeepers from self-preferencing. Despite months of Commission-led stakeholder talks involving Google, VSS providers, and large businesses who benefit from high rankings in Google Search, the regulator ruled in March that Google’s DMA plan did not comply. Google’s latest proposal involves using two vertical search results boxes, one from Google and one from a VSS, with each able to offer three links using the same format, information and features. Vertical search providers who did not win the ability to control the non-Google vertical box would then be ranked in the regular search results. Google’s latest proposal reiterates that it disagrees with the Commission’s preliminary findings but that they “want to find a workable solution to resolve the present proceedings.” The Commission has called a July 8 meeting to hear from rivals, some of whom claim that the changes still do not go far enough.
Context – Arguing over the “fairness” of Google search results has been a morass plaguing the Internet ecosystem for more than 20 years. Every search algorithm change benefits some websites while others feel aggrieved. Unlike in the EU, with the Google Shopping case and then the DMA, US regulators have rejected pursing complaints from vertical search businesses. However, Yelp, a long-time Google critic, is suing Google for anti-competitive treatment following the antitrust ruling by Federal Judge Amit Mehta that Google search was a monopoly. EU regulators are now in the mix to determine how Google search will operate, making it a kind of regulated utility there. Federal judges might soon try on the role in the US.