The Near Memo EU Consumer Research in Hotel market, The impact of recent EU fines on Google, Possible remedies to prevent Google self-preferencing
Google and Booking: The Symbiotic Gatekeeper Relationship in European Hotel Search -
We dive into our recent user behavior research findings about hotel searches in Europe. We recruited 100 users each from Spain, France, and Germany, asking them to find hotels in Paris or Rome, and observed how they interacted with Google's search results.
The European hotel market is quite distinct, with behavior in hotel searches differing drastically from other verticals, as well as across countries. This, coupled with Google’s persistent self-preferencing, poses challenges for fair competition.
EU Court Upholds €2.5 Billion Fine Against Google: Antitrust Ruling Could Shape Future Regulations:
In a landmark decision, the European Court of Justice upheld a €2.5 billion fine against Google for antitrust violations in its Shopping Search case. This ruling marks a significant win for regulators, setting the stage for broader action against Google's self-preferencing practices across multiple sectors.
The case, which dates back over a decade, focused on Google's practice of promoting its own shopping services at the expense of competitors. Despite Google's appeal, the court sided with regulators, reinforcing the original decision. While the fine represents a small fraction of Google’s revenue, the ruling sends a strong message about the EU's determination to hold tech giants accountable.
The key takeaway? The court highlighted that Google's use of "boxes" in search results, which showcase its own services prominently, was a major factor in the decision. This could have serious implications for other verticals like local and hotel search, where similar self-preferencing behavior is prevalent.
Moreover, the Digital Markets Act (DMA) gives the EU further tools to regulate Google’s behavior across sectors. Fines under the DMA could reach up to 20% of global revenue for repeat violations, raising the stakes significantly.
With this ruling in place, it’s clear that European regulators are prepared to push harder on Google’s dominance, not just in shopping but across the entire search ecosystem.
Leveling the Playing Field: Remedies for Google’s Self-Preferencing Practices
In the ongoing conversation about Google's self-preferencing, the focus turned to potential remedies in light of mounting regulatory pressure. We discussed various solutions that could address the issues raised by Google’s dominance, particularly in light of the European Court of Justice ruling.
Ultimately, the team concluded that Google's self-preferencing creates an unfair advantage for itself and other monopolistic platforms. Remedies should focus on leveling the playing field, encouraging competition, and limiting Google’s ability to monetize every user interaction. As regulation heats up, Google’s dominance across industries—especially in search—faces significant challenges in the coming years.
The Near Memo is a weekly conversation about Search, Social, and Commerce: What happened, why it matters, and the implications for local businesses and national brands.
Ep 174 Near Memo
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