Alphabet’s Google will begin testing significant modifications to search result displays in the European Union. The move addresses Digital Markets Act (DMA) requirements regarding the alleged favoring of Google’s own hotel, flight, and restaurant services. Compliance aims to prevent regulatory fines that could reach 10% of the company's global annual revenue.
Initial testing will focus on lodging searches before expanding to other vertical categories. New displays will feature results from both Google and competing search providers. This development follows criticism from rivals who previously characterized Google’s compliance proposals as insufficient.
Alphabet shares traded down 1.1% earlier this week. Investors are currently weighing the impact of these forced algorithmic changes on core search advertising revenue.