Alphabet’s (GOOGL) Google is making additional changes to its search results in Europe to comply with the European Union’s Digital Markets Act (DMA) and address concerns from its rivals. The DMA, which aims to promote fair competition, has prompted Google to reevaluate its search practices.
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To comply with the DMA, Google earlier implemented several changes to its search results, including prioritizing comparison sites in categories like flights, hotels, and shopping. However, these changes have led to some unexpected problems, such as hurting user experience and reducing traffic to smaller businesses.
In response to these issues, Google is introducing new changes to offer users more flexibility in choosing from different types of search results. Users will be able to select between results that link to comparison sites or those that go directly to supplier websites when searching for products, restaurants, flights, or hotels. Also, Google will roll out new formats to display more detailed information from both comparison sites and suppliers, such as prices and images.
Google to Test ‘Blue Links’ Format in Some European Countries
Also, Google plans to temporarily return to a simpler “blue links” format, similar to the older version of Google Search, in Germany, Belgium, and Estonia. In this format, the company will remove the mapping feature that shows hotel locations and related results and replace them with a basic list of website links.
While Google stated that these changes may not be ideal for users, they are necessary to meet the requirements of the DMA. These efforts come as the company continues to face a complex regulatory environment in Europe.
Importantly, Google has been under investigation by the European Commission since March for alleged DMA violations. One of the primary accusations against Google is that it prioritizes its own services over those of competitors. If found guilty, the company could face a fine of up to 10% of its global annual revenue.
Is GOOGL Stock a Good Buy?
Turning to Wall Street, GOOGL has a Strong Buy consensus rating based on 27 Buys and seven Holds assigned in the last three months. At $207.09, the average Alphabet price target implies a 22.93% upside potential. Shares of the company have gained 21.4% year-to-date.
