🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Google's holiday rental service under fire as 40 rivals urge EU antitrust action

Published 10/02/2020, 16:46
Updated 10/02/2020, 16:49
© Reuters.  Google's holiday rental service under fire as 40 rivals urge EU antitrust action
GOOGL
-
EXPE
-
TRIP
-
GOOG
-

By Foo Yun Chee

BRUSSELS (Reuters) - Alphabet (O:GOOGL) unit Google faces the risk of more EU antitrust problems after 40 rivals on both sides of the Atlantic accused it of favouring its own vacation rental service on its search engine and urged European Union enforcers to take action.

The 40 companies and trade bodies in nine EU countries, Switzerland and the United States, which include eDreams Odigeo, Expedia (O:EXPE) and Tripadvisor (O:TRIP), laid out the case against Google in a letter to EU Competition Commissioner Margrethe Vestager seen by Reuters.

"We see strong indications of a competitive strategy for Google to reduce us and our industry to mere content providers for the 'one-stop-shop' of Google's new product," the letter said.

In focus is Google's prominent display of its product at the top of its general search results pages, jazzed up with pictures, a map review, ratings and prices.

"Such favourable ranking and display secures Google's service more user attention and clicks than any competing service may acquire, even if these are more relevant for the user's search query," the letter said.

One of the signatories, who declined to be named, has taken the further step of filing a complaint with Vestager.

The letter came as Google gears up for a legal battle on Wednesday against the first of three antitrust fines levied by Vestager for using its dominance to promote its price comparison shopping service, squeezing out smaller rivals.

The Commission said it had received the letter, but declined comment on receipt of the complaint.

Google said its search results aim to provide users with the most relevant information.

"We're currently testing a new format for specialist searches in Europe, including jobs, local and travel, where people might see a carousel of links to direct sites across the top of the search results," a spokeswoman said.

"This is designed to demonstrate the range of results available."

The company started including vacation rentals in hotel search results in 2018. The Financial Times was the first to report the letter.

(This story corrects paragraph 8 to show commission declines comment on receipt of complaint

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.