Archive
Almunia and Google in the firing line
Although the Commission says it does it expects to settle its antitrust probe into Google, it continues to receive complaints against Google’s search engine and other business activities.
The European Commission has started sending out formal letters to the near-20 companies that have brought antitrust complaints against Google to explain why it intends to accept the search giant’s settlement offer. This follows several state-of-play meetings where Commission officials have met with complainants and interested parties over the past weeks.
Joaquín Almunia, the European commissioner for competition, said in May that he expected the Commission to settle formally with Google after the summer once it had heard complainants’ views on the deal, but pressure continues to mount on the European Union’s antitrust regulator to change tack.
The current offer represents Google’s third attempt to conclude the investigation, which dates back to 2010 and has attracted more than 19 formal complaints, from companies such as fellow web giant Microsoft, price comparison website Foundem and mapping firm Bottin.
Google has, among other things, offered to allow rival specialised search firms to advertise on its main search results page in a space that it has so far reserved for its own specialised (and often monetised) services, including Google Shopping, Google Flights and Google Local. Opponents allege that Google will continue to use its 90% market share in Europe on the market for search to smother rivals on connected markets.
The number of objectors has swelled in recent months: the European consumer organisation BEUC filed a complaint in March; the Open Internet Project, an association of French and German firms whose members include publishing giants Axel Springer and Lagardère, filed a complaint in May, as did Deutsche Telekom.
Their cause has been bolstered by an unusual degree of political pressure for an antitrust case. In May, Sigmar Gabriel and Arnaud Montebourg, Germany and France’s economy ministers, sent a letter to Almunia querying his handling of the case. On Friday (6 June) Ramon Tremosa I Balcells, a liberal Spanish MEP, and Andreas Schwab, a German centre-right MEP, called on the Commission to “reconsider” its position, while a minority of European commissioners, including Michel Barnier, commissioner for internal market and services, and Günther Oettinger, commissioner for energy, have reportedly also voiced concerns about the deal.
Even if Google manages to close the settlement, that is unlikely to spell the end of Google’s antitrust problems. Complainants have already said they will appeal against a decision to settle. In addition, the Commission is currently probing complaints about Google’s Android operating systems for mobile phones.
It is now likely to face a third case, with IMPALA, an association representing independent music companies, expected to file a complaint in the coming days against Google’s subsidiary YouTube, accusing the latter of abusing a dominant position. “YouTube threatened to remove the content of independent labels [from its website] if they did not agree to participate in a new service [to be launched by YouTube] on specific terms,” Helen Smith, executive chair of IMPALA, told European Voice.
Recent Comments