Following a $2.7 billion fine by the European Commission in June, Google has agreed to modify how it displays shopping search results in Europe.
In response to claims that Google prioritizes its own shopping service over others, the tech giant says it will now compete on equal terms.
Despite implementing these changes, Google is still appealing the European Commission’s ruling that Google Shopping holds an unfair advantage in search results.
Regardless of Google’s stance on the Commission’s claims, it is being compelled to make these adjustments.
The European Commission mandated that Google make changes within 90 days to avoid further penalties, and that deadline has now reached its end.
### What is Going to Change?
Previously, product ads shown in the Shopping carousel came exclusively from Google. Now, product ads will be displayed based on auctions.
Additionally, the appearance of product ads has been slightly altered—a line of text has been added to the bottom of each ad unit to indicate who won the auction.
Now, Comparison Shopping Services can bid to place ads on equal terms with Google Shopping.
Google’s ads may still appear in the carousel, but now it will be competing in the auction against other merchants as a standalone business.
### Will This Please the European Commission?
It’s too early to determine if these changes will satisfy the Commission. An argument can still be made that Google’s substantial financial resources will continue to give it an edge. Google can outbid nearly any competitor in an ad auction.
If Google aggressively bids, it could drive up prices to a level where businesses can no longer afford to advertise.
The European Commission will monitor the effects of these changes. More information is likely to emerge in the coming months.
