With European dependence on Google dominating the search market, two companies are collaborating to establish competitive grounds against the tech giant.
When it concerns online searching, the power of Google looms large over Europe. A staggering 90% of Europeans favor Google for their search needs, leaving minimal space for competitors like Microsoft’s Bing. Christian Kroll, CEO of the German search engine Ecosia, remarked, “if the US turned off access to search results tomorrow, we would have to go back to phone books.” His comment reflects the reliance on US tech giants for web searching. Although such drastic measures by the US are unlikely, reports from The Register indicate rising operational costs for European companies tied to US infrastructures.
Looking to mitigate their vulnerability, Kroll's Ecosia and French search engine Qwant announced their partnership to create the European Search Perspective (EUSP), aimed at developing an independent web index. “With the US election turning out as it has, I think there is increased fear,” Kroll noted, emphasizing the necessity for Europe to assert digital sovereignty. This sentiment echoes wider political movements within Europe advocating for greater control over digital infrastructure and services.
Set to launch initially for the French market at the beginning of 2025, with Germany to follow, EUSP signals not just innovation but also collaboration amid political uncertainties. “There should be a European option” was the viewpoint expressed by Kenneth Propp from the Atlantic Council, highlighting the need for alternatives as political relations become strained, particularly if President Donald Trump were to assume office again.
The feasibility of this venture may hinge on the legislative backdrop of the EU’s Digital Markets Act, operational since mid-2023. This legislation ensures European companies like Ecosia and Qwant can access data from US firms, which is pivotal for refining their search algorithms. Meanwhile, Google's parent company, Alphabet, is contending with serious legal repercussions as well; recent rulings by US federal judges suggest the company illegally monopolized the search market, potentially impacting its profitability and market structure.
The integration of AI technology within search engines adds another layer of complexity and opportunity. The continual evolution of search technologies implies new competitors may arise, with potential shifts on the horizon. Kroll emphasized, “Search engines are going through an evolution. No one knows yet what this will look like.” This uncertainty could lead to creating novel approaches, potentially reinforcing European search engines and their relevance.
Despite aspirations for growth, challenges persist. European tech firms historically lag behind their US counterparts when it’s time to secure investments. Kroll has remained tight-lipped on specifics, stating they are still on the lookout for partners to bolster their project. Propp articulated the advantages of European regulatory frameworks compared to their looser US counterparts, stating, “You establish a comprehensive regulatory base...That becomes competitive advantage for European companies.”
Compellingly, the goal for Ecosia and Qwant is modest yet ambitious, eyeing for 5-10% market share by 2030. While lower than expected, it signifies immense potential volumes and the opportunity to refine search algorithms finely tuned to European preferences. Kroll pointed out opportunistically, “results should be more relevant to Europeans,” citing potential examples such as prioritization on European travel options over flights.
Looking to carve out their niche, Ecosia and Qwant's endeavor is very much about challenging US supremacy by aligning European digital interests. If their venture succeeds, it may very well embody Europe’s resolve to bolster its digital sphere amid external pressures.