Four days after Google announced modifications to its search results, over 20 European price comparison websites have issued a joint statement criticizing the changes. According to the price comparison sites' open letter released on December 11, 2024, Google's proposed alterations fail to address fundamental issues outlined in the Digital Markets Act (DMA).
The group, which includes prominent platforms such as Germany's Idealo and billiger.de, France's Le Guide, PriceRunner, Kelkoo, kieskeurig.nl, and trovaprezzi.it, states that Google has repeatedly ignored feedback during implementation discussions.
According to the coalition's letter, Google held more than 100 events seeking input on DMA compliance measures. However, the comparison sites argue that despite these consultations, Google "has simply, repeatedly, ignored this feedback, and instead continued to iterate on the same non-compliant solution for months."
The controversy centers on Google's November 26 announcement detailing changes to its search interface. The modifications include expanded units allowing users to choose between comparison sites and supplier websites. Additionally, Google proposed reintroducing its previous "ten blue links" format, currently being tested in Germany, Belgium, and Estonia.
The comparison sites identify three main issues with Google's approach. First, they assert that Google continues to favor its own shopping service by positioning it prominently at the top of search results. Second, they argue that the new interface design keeps users on Google's search page longer, reducing traffic to independent comparison platforms. Third, they claim Google has not provided sufficient transparency regarding its selection algorithms and auctioning processes.
The comparison platforms emphasize that they did not request Google to remove useful features or add new interface elements. According to their statement, these additions "are confusing, keep consumers more on the Google Search page, and remove vital organic traffic for comparison shopping sites."
In response to these criticisms, Google has referred to its November 26 blog post, where it detailed the various changes implemented over the past year to comply with DMA requirements.
The European Commission has initiated proceedings against Google for potential non-compliance with the DMA. The comparison sites are urging regulators to take decisive action, including issuing preliminary findings and imposing fines along with periodic penalty payments to ensure compliance.
This dispute emerges as Commissioners Ribera and Virkkunen assume their new roles overseeing DMA implementation. The coalition of comparison sites has pledged their support to help ensure the legislation's success.
The case highlights ongoing tensions between major digital platforms and specialized service providers in the European digital marketplace. It also underscores the challenges regulators face in implementing and enforcing the DMA, which aims to ensure fair competition in digital markets.
For context, the DMA, which took effect earlier this year, prohibits large digital platforms from favoring their own services over those of competitors. Article 6(5) of the regulation specifically addresses self-preferencing practices in digital markets.
The coalition represents a significant portion of Europe's price comparison sector, with members operating across multiple countries and serving millions of consumers. Their joint action demonstrates the industry's united stance on the implementation of the DMA's requirements.
Google's parent company, Alphabet, faces increasing scrutiny from European regulators. The current dispute adds to a series of regulatory challenges the company has encountered in the European Union over the past decade.