Google Drops Paid Android Search Choice Auction After EU Pressure

Google Alters EU Search Choice Screen, Abandoning Auction System

Google has announced it is discontinuing a widely criticized auction system used for a choice screen offered to users in the European Union. This change will allow eligible search providers to participate freely.

Background on the Auction Model

The auction format was implemented as Google’s response to a 2018 EU antitrust ruling concerning Android. However, competitors consistently argued that the system was inherently unfair, a point previously highlighted in our reporting.

The Android choice screen presents users with a selection of search engines during device setup or factory reset. The options displayed were determined by sealed bids submitted by search engine companies vying for one of three available slots.

Regardless of the EU market, Google’s own search engine consistently remained a featured “choice” on the screen.

Ineffectiveness and EU Pressure

The pay-to-play model proved unpopular with smaller search engines, including those with unique business models like Ecosia. Critically, it failed to restore competitive balance within the search market. Consequently, Google has been compelled to abandon the system.

The EU Commission had indicated a potential shift, with competition chief Margrethe Vestager stating in May that they were “actively working on” improving Google’s Android choice screen for rival search and browser options. The Commission evidently responded to repeated concerns regarding the auction’s fairness and efficacy.

Google's Response and Framing

Google maintains it has been engaged in “constructive discussions” with EU lawmakers for years. The company states its goal is to “promote even more choice on Android devices” while continuing to invest in the platform.

Furthermore, Google suggests the “promotional opportunity” (the auction) was introduced “in consultation with the Commission,” seemingly deflecting blame.

Upcoming Changes and Implementation

Google is now making “final changes,” including free participation for “eligible search providers,” following further feedback from the Commission. These changes will take effect in September on Android devices.

The revised system raises questions about eligibility criteria and transparency. Will Google’s criteria be openly available, or will they remain concealed like the previous auction process?

The number of search engines presented to users will also increase, exceeding the current four.

Details on the New Choice Screen

The placement of Google’s own search engine within the list, and the criteria for ranking all options, remain key areas of interest. Factors such as market share or random allocation could play a role.

The Commission has provided some insight, indicating that the new choice screen will feature five immediately visible search providers, selected based on market share within the user’s country and displayed in a randomized order.

Users will be able to scroll to view up to seven additional search providers, bringing the total to twelve.

Eligibility and Restrictions

Update: Google has clarified that only general search engines will be eligible for inclusion. Vertical search engines, as well as multiple brands owned by the same entity, will be excluded.

It’s important to note that the EU regulators retain the authority to monitor antitrust compliance and address any new complaints that may arise.

Reactions from Competitors

DuckDuckGo, a privacy-focused search engine, criticized the timing of the change, arguing it was three years overdue. They also advocated for extending the changes to all platforms, including desktop and Chrome, and simplifying the process for Android users to switch default search engines.

Ecosia, a not-for-profit search engine, celebrated the outcome as a victory against Google’s monopolistic practices.

Commission Confirmation

The Commission confirmed that the changes were prompted by concerns raised by competitors. A spokeswoman stated they “discussed with Google means to improve that choice screen to address those concerns.”

“We welcome the changes introduced by Google to the choice screen. Being included on the choice screen will now be free for rival search providers,” she added. “In addition, more search providers will be included in the choice screen. Therefore, users will have even more opportunities to choose an alternative.”

The Commission emphasized that the new choice screen represents a “positive development” in implementing the remedy following their Android decision.

The effectiveness of this Commission-reconfigured choice screen in shifting Google’s search engine market share in the region remains to be seen.

These are undoubtedly interesting developments!