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Updated 11.50
THE EU HAS decided to go to war with Google over claims it abused its position as the unassailable search engine giant.
After a five-year investigation into the US tech behemoth, the European Commission today officially accused the company of breaking antitrust rules by distorting search results to favour its own price-comparison service.
The commission said its preliminary view was Google’s policies infringed on EU rules by stifling competition and harming consumers. That could result in fines of over €6 billion – as well as forcing the company to change the way it did business in Europe.
It also announced it was launching a separate competition probe into the tech company’s Android platform tolook at whether Google had abused its position to enter into anti-competitive deals or favour its own apps.
The commission’s anti-trust case centres on the search engine has been favouring its own price-comparison service – now called Google Shopping – by giving it more-prominent positioning in results over the past seven years.
It said Google’s actions harmed consumers because they weren’t necessarily getting the most-relevant information and it also stifled innovation by making it harder for competitors to enter the market.
The commission also claimed:
Google enjoys well over 90% market share of the European search engine business, according to figures from StatCounter.
Billions in fines
As a result of the charges, the company could be fined up to 10% of its worldwide turnover – worth $66 billion (€62 billion) last year – although it’s likely the parties would agree a settlement before reaching that point.
Competition Commissioner Margrethe Vestager said the commission’s aim was to make sure companies didn’t “artificially deny European consumers as wide a choice as possible or stifle innovation” by giving themselves unfair advantages.
“Google now has the opportunity to convince the Commission to the contrary,” she said.
However, if the investigation confirmed our concerns, Google would have to face the legal consequences and change the way it does business in Europe.”
Tech blog Re/code published an internal Google email confirming the impending charges, although the document added the company had a “very strong case”.
“Competition online is thriving — despite what many of the complainants in this case allege,” the message said.
Indeed if you look at shopping, it’s clear that there’s a ton of competition (including from Amazon and eBay) that has not been harmed by Google’s own shopping service.”
Deal’s off
The tech firm already came close to striking a deal with the commission last year, but that collapsed after protests from powerful member states like Germany and France.
The Google email also said the company was aware the commission was about to launch a formal probe into its Android operating system over claims it favoured its own apps over those of competitors.
The charges are the latest salvo in Europe’s multi-front battle with US tech companies, which have come under fire for everything from tax avoidance to privacy concerns.
The commission is currently looking at claims Apple was handed a sweetheart tax deal in Ireland, while the UK has unveiled its so-called “Google tax” in a bid to stop multinationals diverting profits out of the country.
- With AFP; first published 10.05am
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I for one welcome our search engine overlords.
Welcome?
It’s not a witch hunt like many people think. The EU have been very consistent on going after monopoly abusers. They did the same with Microsoft a few years ago and the result was Windows N, which didn’t come with all of the previously mandatory Microsoft bloatware.
EU acting like gangsters, looking for a slice of the profits to allow people continue their business.
Nobody is forced to use Google.
Nobody forced you to use Aerlingus in the 1980s when they were charging £500 (in 1980s money) for a London Ticket and they were the only one.
It’s part of a strategy to make life difficult for companies who make billions in profits but pay nothing in taxes through the use of Double Dutch Irish Sandwich avoidance schemes…I can’t see any issue with that ?
They have nearly 93% market share. And I used Google to find that out.
It’s actually companies like Microsoft, Yahoo and that German search engine I can’t think of.
It’s not the EU trying to dip into Google’s coffers. It’s actually the other tech giants trying to gain a foothold and make the market more competitive.
Are you for real? Google are the only search engine is it? Do you actually know how many search engines Europe has access to?
How did you ignore that?
If you want all the info then google Google!!!!!!
I see what you did there.
I have it on good authority that if you type Google into Google you can break the Internet!!
No don’t do that. I have it on good authority that if you type Google into Google that you can break the Internet.
Please don’t try it.
Eu are spot on on this.
When ever I google “maps”
I really mean bling maps
[sarcasm]
Eu looking for a few bob , that’s all there is to this
Given the EU has precedent for this , their ruling against microsoft over IE for a far less serious misuse of monopoly was spot on and opened the market up to other competitors
Google are guilty as sin for using their market position to force customers to tie into only their services
Large market share != monopoly. If you don’t like Google, there’s absolutely nothing stopping you using another search engine. Compare and contrast the state enforced monopolies from healthcare to TV.
Not true. Google is deeply embedded in the operating systems of many phones and devices.
Yes it’s embedded on various things like phones and antivirus software, but you’ll notice when you first install or get these devices you have to accept terms and conditions – people should really read these, declining doesn’t render the device or software unusable. Hence it’s the users responsibility to choose or more simply read. Even if Google services are embedded in some things you always have the choice not to use it and use a preferred service you can’t blame Google for people using their service it’s ridiculous !
Fergus do you really want a world where people have to read realms of small print just to use something?
It’s official the EU Commission has lost its marbles, buried in red tapes and it needs to search and find something to do to justify its existence.
Why doesn’t the EU promote the use of different search engine by educating users on the alternatives.
Let’s have a look
Google
Bing
Yahoo
Ask.com
AOL
Blekko
Duckduckgo
Chacha
Who here has even heard of the last three of the list. It’s a case of marketing and branding and consumer choice.
I have tried the others and I still come back to google. It’s a personal choice.
This is an attack on Ireland more so. Get Google to up sticks and move to a another country.
I’ve never even heard of Google Shopping and I often google for price comparisons and online prices. I don’t see where Google are giving it preferential treatment then? Otherwise it should pop up everytime I search for a product online instead of Amazon or EBay which are usually at the top of my search results.
Man, the last Time I used Bing or Yahoo I felt an overwhelming surge of nausea. Google FTW.
The US has also levied some hefty fines on cash rich EU based multinationals too recently.
Its a shakedown on the multies!
Google should pay up, they can easily afford to.
Facebook! If you’re reading this .. and I know you are .. You’re next!
They offered to settle and then politicians in Germany and France kicked up and the commission had to continue with their discovery investigations.
Shur just Yahoo it and see.
have your say