Anyone in the US doing their holiday shopping from the product showcases that appear at the top of Google’s search results is almost certain to pay substantially more than if they delved deeper in the search engine.
Five out of every six items in the panels shown on a Google search made in America are more expensive than the same items from other merchants hidden deeper in the index, with an average premium of 34 per cent, according to a Financial Times analysis.
The scale of the apparent premium pricing drew complaints from some Google critics, who said it echoed issues that are at the heart of an antitrust case in Brussels in which the company has already reached a tentative settlement with European regulators.
By showing its chosen product listings prominently while relegating other services, Google could make more money from merchants who paid to have their products featured, said Gary Reback, a Silicon Valley lawyer who represents a number of the search engine’s rivals.
Google countered that the price paid by consumers was only one consideration in how it selected items to appear in the panels. “Just as people consider multiple factors when they shop, like free shipping or whether they prefer a particular retailer, there are a variety of factors” at work, it said.
Critics claim that many consumers do not realise the product listings are advertising rather than Google’s selection of the best products to buy. Unlike other panes that show advertising on the search engine, the panels are not tinted a different colour and are labelled “sponsored” rather than “ads”.