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The Impact of the Digital Markets Act on Google Flights

Author

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  • Louis Pape

    (ECO-Télécom Paris - Equipe Eco Economie - CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

  • Gustavo Fróes Do Vale
  • Daniel Andrade Carmo
  • Carolina Brandão Farinha Baeta
  • Antony Guilherme Costa Do Amaral
  • Rafaela de Carvalho Machado Pinheiro

Abstract

We quantify the impact of the European Union's Digital Markets Act (DMA) on online search and traffic flows towards Google Flights. Relying on a difference-in-differences design to compare EU to European non-EU countries between January 2023 and December 2024, we find that Google Flights experienced a 30% decline in total visits and a 42% drop in unique visitors resulting from a DMA-induced design change to Google Search. This design change did not foster more search queries for google flights, suggesting its popularity rested on its preferential treatment within Google's search results. These findings suggest pro-competitive effects of the DMA and imply an opportunity for Online Travel Agencies, and in particular airline ticket sellers, to attract these previously captive consumers through further investments in SEO and brand equity.

Suggested Citation

  • Louis Pape & Gustavo Fróes Do Vale & Daniel Andrade Carmo & Carolina Brandão Farinha Baeta & Antony Guilherme Costa Do Amaral & Rafaela de Carvalho Machado Pinheiro, 2026. "The Impact of the Digital Markets Act on Google Flights," Working Papers hal-05565052, HAL.
    • Handle: RePEc:hal:wpaper:hal-05565052
    Note: View the original document on HAL open archive server: https://hal.science/hal-05565052v1
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