Google Offers To Boost Rivals In Search Results To Avoid EU Antitrust Fine Under Digital Markets Act: Report

To avoid a hefty fine from the EU, Alphabet Inc.’s GOOG GOOGL Google is reportedly offering to revamp its search results to better showcase rivals, as scrutiny over the tech giant’s dominance intensifies.

What Happened: According to internal documents seen by Reuters, Google has proposed new concessions aimed at satisfying the European Commission's concerns over its preferential treatment of in-house services like Google Shopping, Flights and Hotels.

Under the new proposal, a vertical search service (VSS) chosen by objective, non-discriminatory criteria would receive a prominent box at the top of Google’s search page, formatted identically to Google's listings.

This box would include three direct links selected by the rival VSS, covering areas like hotels, restaurants, airlines and transport. Other VSS results would still appear, but without the dedicated box—unless clicked by users, the report noted.

“We do not agree with the (Commission’s) preliminary findings’ position but, on a without prejudice basis, we want to find a workable solution to resolve the present proceedings,” the documents sent by both Google and the Commission to the rivals read.

The European Commission is expected to host a feedback meeting with rival companies on July 8. However, some rivals, speaking anonymously, expressed dissatisfaction, claiming Google's changes still fall short of ensuring fair competition, the report said.

Why It’s Important: In January, Google also challenged a record $4.55 billion EU antitrust fine in court, arguing that users naturally preferred its search engine and Chrome browser.

Alphabet posted first-quarter revenue of $90.23 billion, marking a 12% increase from the prior year and surpassing the Street consensus estimate of $89.2 billion, according to Benzinga Pro. Google Search contributed $50.7 billion, up from $46.2 billion.

Benzinga's Edge Stock Rankings show that Alphabet continues to trend upward across short, medium and long-term timeframes. Additional performance details are available here.