Report from Reuters
In Brief – Google has proposed more changes to its search results page to improve the visibility of “vertical” search competitors, such as those specializing in hotels, airfares, or local services, 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 penalizes vertical competitors and preferences its own vertical offerings. The DMA prohibits gatekeepers from self-preferencing. Google latest proposal will allow each eligible Vertical Search Service (VSS) to display a dedicated box within search results that would use the same format, information and functionality as comparable Google services and allocate the boxes on objective, non-discriminatory criteria. At the same time, Google proposes giving direct services suppliers, such as hotels, restaurants, and airlines, a separate “supplier” box that would appear along with the VSS. Google maintains that it is engaging constructively and reiterates concerns that mandated changes might advantage intermediaries over direct suppliers.
Context – The “fairness” of search has been a morass plaguing the Internet ecosystem for more than 20 years. Every change means winners and losers. The DMA regulators have waded in as if Google search is a regulated utility. The initial focus has been on verticals, but complaints about how Google is integrating AI into search are heating up fast. Publishers have raised AI objections with the DMA regulators, as well as the EU’s Digital Services Act regulators. The impact of AI services on search was also key to US District Judge Amit Mehta’s decision to limit his remedies order regarding Google’s search monopoly, seeing rapidly growing AI chatbot companies as likely search competitors and the technology as a mainstay of future search. Google’s search engine has been designated for regulation under the UK’s version of the DMA, with the Competition and Markets Authority noting that Google Search’s AI-enabled services are included.