§1.2 Ranking transparency – background

11. Ranking is defined in Article 2(8), cited above, and can essentially be thought of as a form of data-driven, algorithmic decision-making. When providers present, organise or communicate information on goods or services for consumers or search results, they ‘rank’ results on the basis of certain parameters. 12. As explained in Recitals 24 and 26, the ranking of goods and services by providers has an important impact on consumer choice and, consequently, on the commercial success of the users offering those goods and services to consumers. As the economy continues to move online, ranking in search and on online intermediation services becomes increasingly central to entrepreneurship and EU businesses’ commercial success will increasingly depend on their visibility and discoverability online. 13. Providers design their ranking methods, including proprietary algorithms, in different ways. These approaches to ranking are frequently adapted and in general not disclosed. From the consumers’ perspective, the quality of search results may differentiate services and, therefore, the detailed functioning of ranking methods may be a provider’s competitive edge or trade secret. Businesses trading online therefore do not always know the reasons for their performance in ranking or whether and how they could perform better, potentially with the help of paid ranking, despite their ability to reach customers critically depending on this knowledge. 14. Therefore, whilst the Regulation does not limit the choice of the ranking parameters that providers may want to use, Article 5 aims to improve predictability for users.

← 1.1 · All articles · 1.3 →

Source: EUR-Lex (Cellar) · retrieved 2026-09-07