By Edith Hancock
Alphabet's Google has reinstated a feature that showcases hotels in its search results in Germany, Estonia and Belgium, the latest development in a row between the tech giant and rival price-comparison sites after it said hotel groups saw a significant fall in traffic.
Google has to comply with the Digital Markets Act in the European Union, which bans it from favoring its own products and services--such as Google Shopping and Hotels--over rivals' offerings through its search-engine results.
The company had temporarily removed its "hotels" feature in three EU member states earlier this year as a test in an attempt to bring its business in line with the rules. However, Google has since reinstated the feature, saying the test drew traffic away from hotel groups and left users less satisfied with their search results.
"A handful of intermediary comparison sites are calling for even more extreme changes that would meaningfully degrade helpful features for users," Google said in a blog post.
"People were measurably less satisfied with their search results and it took them longer to find hotels, including by having to do more searches," it said, adding that removing the hotel feature would create a "lose-lose situation" for consumers and businesses.
On Wednesday, a group of more than 20 price-comparison sites published an open letter criticizing Google, saying the company is violating the DMA and hasn't listened to their feedback on its search result changes. They called on the European Commission to send formal charges to the tech giant.
Write to Edith Hancock at edith.hancock@wsj.com
(END) Dow Jones Newswires
12-12-24 1032ET