The (dark) European future of Google Shopping and the consequences for advertisers
Posted: Tue Jan 07, 2025 9:42 am
On June 27, the European Commission imposed a fine of 2.3 billion euros on Google, considering that it had used its dominant power in the digital world for its own benefit through its Google Shopping service .
What started out as a product comparison tool in 2002 has now become a showcase for brands and retailers, something that Competition Commissioner Margrethe Vestager describes as illegal, as it "prevents other companies from competing on their own merits and from innovating. And most importantly, it has prohibited European consumers from freely choosing services and from enjoying the benefits of innovation."
The technology company now has 90 days to stop this type of practice by "giving the same treatment to the comparison of products and services of competitors."
But what are the consequences of this decision for advertisers?
The Drum explains how changes to Google's service will affect brands.
There is no doubt that this type of investment offers marketers more belarus phone number than positive results and the changes that may occur will have a great impact on their strategies.
Advertisers must therefore ensure that they are in the best position to cope with the changes.
It will therefore be essential to prioritize campaigns that highlight the most valuable product for brands and ensure that search campaign coverage covers all their products.
For Google, the only options are to add links to competitors' price comparison services , reduce the current options and type of searches connected to its Shopping service, and eliminate the service completely in Europe.
Google will most likely not give up and appeal the European Commission's decision, which would leave its service in limbo for years while it will continue to face accusations of abusive behaviour from the authorities in its other services such as Android or Adsense.
The road ahead for Google is expected to be long and complicated, but what is clear is that any decision to comply with European regulations will mean a reduction in its income and, consequently, in that of advertisers.
What started out as a product comparison tool in 2002 has now become a showcase for brands and retailers, something that Competition Commissioner Margrethe Vestager describes as illegal, as it "prevents other companies from competing on their own merits and from innovating. And most importantly, it has prohibited European consumers from freely choosing services and from enjoying the benefits of innovation."
The technology company now has 90 days to stop this type of practice by "giving the same treatment to the comparison of products and services of competitors."
But what are the consequences of this decision for advertisers?
The Drum explains how changes to Google's service will affect brands.
There is no doubt that this type of investment offers marketers more belarus phone number than positive results and the changes that may occur will have a great impact on their strategies.
Advertisers must therefore ensure that they are in the best position to cope with the changes.
It will therefore be essential to prioritize campaigns that highlight the most valuable product for brands and ensure that search campaign coverage covers all their products.
For Google, the only options are to add links to competitors' price comparison services , reduce the current options and type of searches connected to its Shopping service, and eliminate the service completely in Europe.
Google will most likely not give up and appeal the European Commission's decision, which would leave its service in limbo for years while it will continue to face accusations of abusive behaviour from the authorities in its other services such as Android or Adsense.
The road ahead for Google is expected to be long and complicated, but what is clear is that any decision to comply with European regulations will mean a reduction in its income and, consequently, in that of advertisers.