The EU had been after Mountain View's search engine for some time, to address complaints from various competitors, which alleged that Google was reserving the best spaces in order to monetize the immense traffic of the search engine. This month, we started to see the first changes in Google Shopping following the European Commission's sanction.
How does Google Shopping work?
For those who don't know how Google's advertising system works... The search engine performs an auction in hundredths of a second, when a user performs a search, to establish on the one hand, the position of the ads. (the higher up and/or to the left you have a higher chance of clicks) and, on the other hand, the actual cost price per clic (you only pay when someone clicks on the ad and the traffic is redirected to the client's website).
Google Shopping, after the sanction of the European Commission
Last June, the European Commission imposed a fine of 2,400 million euros (2,879 million of $) for abuse of dominance in its Google Shopping service. These are the product ads it advertises along with the merchant's name and price. Google has appealed the fine, has also taken a parallel approach to offer its rivals the possibility of inserting advertisements of its customers through an auction system.
The American multinational made a similar proposal to try to solve the case 3 years ago. With the particularity of reserving the first two advertising spaces for itself, something that the European Commission rejected. Now, Google has proposed that in all advertising spaces, any competitor can appear. Yes! By setting a minimum price.
It seems that, since yesterday (18/9/17) Google is making changes aimed at sharing such advertising space, with the caption ".by GoogleThe "advertising support provider" is distinguished in order to distinguish the supplier of the advertising support. We will keep an eye out for more than likely new Google Shopping ads before the end of the month.
Have you noticed? How do you think the European Commission's requirements may affect you in the future? Cheer up! We look forward to hearing from you!