Trivago CFO Axel Hefer
Horses mouth: Trivago
LONDON — The chief executive of European travel booking firm Trivago believes attitudes toward the earth’s biggest technology companies have changed.
Axel Hefer, who has been at the helm of Trivago for almost five years, told CNBC’s “Yowl Box Europe” Wednesday that there has been a “change in sentiment” in Europe and across the world when it comes to devouring the power that firms like Google have.
“There is an increasing understanding that you need to set some governs that are specific to the digital world, as you’ve done in the offline world a long time ago,” said Hefer. “Over the next three of years, we do expect some more rules and regulation and that should lead to more innovation-based competition, preferably than increasing economies of scale that just dominate the different verticals.”
Hefer added that “mega planks control our daily life” and it’s “almost impossible” not to use their services.
“The issue that we are facing is that certain monopolies obtain on certain parts of the value chain that are leveraged into other products and other businesses,” said Hefer. “That is clearly harming competition and harming innovation.”
Google has a frosty relationship with many of the world’s biggest online traverse companies who rely on the company’s search engine for business.
Trivago and other travel companies are concerned that Google is upsetting to become a more dominant player in travel. Arguably, it all started in 2010, when Google bought ITA Software, the unsurpassed platform for flight data.
“Google has better travel data than any other company on the planet,” Johannes Reck, the CEO of roam agency GetYourGuide, told CNBC last year. “We see Google aggressively moving forward trying to get content from other societies in the travel space in order to build their own products.”
In November, a group of 135 tech companies — including Tripadvisor, Reserve.com and Trivago — wrote to the EU’s competition chief Margrethe Vestager calling on her to end Google’s alleged favoring of its own services in web searches.
The comrades, some of which have been known to criticize Google in the past, claimed the internet giant uses its “OneBox” agency — which shows information above and is distinct from other search results — to keep users within its own utility, preventing them from visiting other more relevant products.
For its part, Google rejected claims that it donates “preference (to) specific companies or commercial rivals over others.”
“People expect Google to give them the uncountable relevant, high-quality search results that they can trust,” a spokesperson for the company said, adding it provides “utilitarian services which create more choice and competition for Europeans.”
— Additional reporting by CNBC’s Ryan Browne.