Google search pushes firms into dead zones

BUYING ADS HAS BECOME THE ONLY WAY TO ENSURE A TOP SPOT ON THE FIRST GOOGLE SEARCH PAGE

LONDON:“WHERE’S the best place to hide a body? The second page of a Google search.”

The gallows humour shows that people rarely look beyond the first few results of a search, but Lee Griffin isn’t laughing.

In the 13 years since he co-founded British price comparison website Gocompare, the 41-year-old has tried to keep his company at the top of search results, doing everything from using a “For Dummies” guide in the early days to later hiring a team of engineers, marketers and mathematicians. That’s put him on the front lines of a battle challenging the dominance of Alphabet Inc.’s Google in the search market—with regulators in the US and across Europe taking a closer look.

Most of the sales at Gocompare, which helps customers find deals on everything from car and travel insurance to energy plans, come from Google searches, making its appearance at the top critical. With Google—whose search market share is more than 80%—frequently changing its algorithms, buying ads has become the only way to ensure a top spot on a page. Companies like Gocompare have to outbid competitors for paid spots even when customers search for their brand name.

“Google’s brought on as this thing that wanted to serve information to the world,” Griffin said in an interview from the company’s offices in Newport, Wales. “But actually what it’s doing is to show you information that people have paid it to show you.”

Gocompare is far from the only one to suffer from Google’s search dominance. John Lewis, a high-end British retailer, last month alluded to the rising cost of climbing up in Google search results. In the US, Iac/interactive Corp., which owns internet services like Tinder, and ridehailing company Lyft Inc. have signalled Google’s stranglehold on the market.

The clamour from companies has prompted the UK competition watchdog to study online platforms and digital advertising in July, aiming to examine the market power of companies like Google over online marketing. The European Union has been trying to rein in Google, fining the company €1.5 billion ($1.6 billion) this year for thwarting advertising rivals.