Google is at risk of facing significant fines from the European Union due to disputes with travel industry stakeholders over search result displays.
Criticism from Competitors
The tech giant has attracted criticism and complaints from companies like Skyscanner, Booking.com, and Kelkoo, claiming that Google favors its services like Google Flights and Google Hotels in search results. These companies accuse Google of monopolizing the market.
Google's Proposals and Their Rejection
At a European workshop on July 7-8, Google presented proposals to create a dedicated section for vertical search services like Skyscanner and Kelkoo. However, competitors rejected these alternatives, arguing they wouldn't create level playing fields. Skyscanner CEO Bryan Batista believes the proposed layouts could mislead users and deepen Google's search dominance.
Potential Financial Consequences for Google
In March, the European Commission found signs of non-compliance by Google with the Digital Markets Act and warned the company of possible fines. If Google's changes are deemed insufficient, it could face fines of up to 10% of its global revenue, potentially amounting to around $30.7 billion, exceeding the €4.34 billion fine previously imposed for antitrust violations.
Should Google fail to negotiate with competitors and resolve these violations, it may face severe financial repercussions and increased oversight from European regulators.
