Google Overhauls Search Amid EU Pressure—Rivals Cry Foul as Tech Giant Dodges $5B Fine

Google blinks first in its high-stakes showdown with Brussels. The search titan just rolled out sweeping changes to its algorithm—a move that reeks of regulatory panic.

The Art of War (Antitrust Edition)

Facing heat from competitors and EU watchdogs armed with $5B fine threats, Mountain View’s ‘voluntary adjustments’ suspiciously align with DMA compliance demands. Coincidence? Brussels bureaucrats aren’t buying it.

Silicon Valley’s Favorite Shell Game

While Google claims these tweaks ‘enhance user choice,’ analysts spot the classic Big Tech shuffle—minimum concessions for maximum fine avoidance. Meanwhile, rival CEOs fume as their ‘level playing field’ still tilts at a 15-degree angle toward Alphabet’s coffers.

The Cynic’s Bonus

Wall Street shrugs—regulatory theater never stopped a tech stock from hitting ATHs. EU fines? Just another line item in Google’s $200B war chest. The real crime? Still using ‘Don’t be evil’ as a PR slogan while out-lobbying small nations.

Google makes several changes to its products to follow DMA rules

The EU’s important Digital Markets Act (DMA) has led to charges against a tech firm. DMA lists “dos and don’ts” for Big Tech to reduce its power and offer rivals more space to compete and consumers more choices.

Last week, Google proposed to develop a box at the top of the search page for what is referred to as a vertical search service (VSS). This WOULD include links to specialized search engines and hotels, airlines, restaurants, and transport.

This new offer, Option B, is an alternative to a proposal sent off last week, as stated in the tech company’s document shared by the Commission with the relevant party.

The document stated that with ‘Option B’, the tech company displays a box with free links to suppliers every time a VSS box appears. 

The box for suppliers,  which includes top hotels, restaurants, airlines, and travel services, would be placed under the VSS box, and the firm would structure the information about these suppliers. 

The document also highlighted that, unlike a Google VSS that gives suppliers chances while putting them into a category, “Option B” will offer the same chance without putting them into a category.

A Google spokesperson stated that they have made hundreds of product changes to follow DMA rules.

The spokesperson also highlighted concerns that even though they aim for compliance, the company is worried about some of the DMA’s real-life effects, resulting in poorer online products and experiences for people in Europe. If the tech firm is found to violate, it could face a fine of up to 10% of its total annual revenue worldwide. 

Europe’s antitrust regulators vow not to back down on US tech giants

In two cases, Google was accused of violating landmark European Union rules. Apple was told to help competitors connect with its iPhones and iPads as Europe’s antitrust regulators demonstrated that they were not backing down on US tech giants.

Since March of last year, the European Commission has been focusing on both the Alphabet-owned firm and Apple following allegations that they may not comply with the Digital Markets Act.

The European Commission’s action came when President Donald TRUMP threatened to impose tariffs on countries that penalize US companies.

To begin with, the EU competition watchdog revealed preliminary findings accusing the firm of violating DMA rules, two people said.

The Google case focused on whether it prevents app developers from telling users about deals that are available outside of its app store, Google Play, and if it gives preferential treatment to its own search services, such as Google Flights in Google Search.

The first tech firm’s charge centered on the company’s specific practices on Google Play. Regulators said that Alphabet prohibits app developers from successfully redirecting buyers to other markets for cheaper deals.

The Commission also sent two orders to Apple to open its ecosystem to rivals, six months after it opened investigation proceedings into the iPhone maker.

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