A kickback stampede: Why Google’s EU comparison shopping program may carry risk

Cast your mind back to June 2017. The birds sang, the sun shone and Google received a record-breaking fine of €2.4 billion ($2.8 billion).

But why, exactly? In a verdict that provoked differing opinions, European Union (EU) regulators ruled when it came to its search results pages, Google favored its own search results over other comparison shopping services (CSS). Comparison shopping services such as Kelkoo or Shopzilla operate by aggregating online retailers’ product offers.

Originally the search engine giant limited comparison shopping services to showing text ads only. Following their complaints, however, Google made it technically possible for them to show product ads. But this changed nothing for the CSS providers, as retailers saw no benefit in an additional intermediary. Further pressure followed, culminating in the eye-raising penalty and an antitrust order that Alphabet’s subsidiary do more to even things up.

The Shopping platform is big business for Google. Top retailers pump huge amounts of money into the format, more than they do on text ads.

Image source: crealytics.com

Faced with the risk of further penalties, including the shutdown of its Shopping service altogether, Google needed a quick response. Twelve months later, the solution looks bright for EU retailers, Google now offers discounted rates to retailers that use its new Comparison Shopping program.

[Read the full article on Search Engine Land.]

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About The Author

Andreas Reiffen

Andreas Reiffen is an entrepreneur, marketing technologist and thought leader in data-driven advertising. Between 2006 and 2008 Andreas operated as a PPC super affiliate working for Zappos and other retailers. In 2008 he founded crealytics, the Berlin-based provider of camato, the leading Google Shopping Tool to automate PLA campaigns and improve performance. Several of the largest international Ecommerce retailers are using camato to manage Google Shopping in more than 100 markets across the globe, generating over $3B in revenues per year. camato has been shortlisted for numerous awards in 2016 including European Performance Marketing and Drum Search.