Almunia to decide on Google settlement route in ‘coming weeks’
13 Sep 13 | 08:21 GMT
Author: Matthew Newman and Lewis Crofts
IN BRIEF
EU antitrust chief Joaquín Almunia will decide “in the coming weeks” on whether to conclude his investigation into Google based on the company’s offer to make changes to its search-advertising business, or turn to formal antitrust charges and a “possible negative decision.” He said he wanted to find “effective solutions” to his concerns but that it was “still open” whether the case would be settled.
EU antitrust chief Joaquín Almunia will decide “in the coming weeks” on whether to conclude his investigation into Google based on the company’s offer to make changes to its search-advertising business, or turn to formal antitrust charges and a “possible negative decision.”
Speaking at a conference* in Florence, Almunia said he wanted to find “effective solutions” to his concerns over the company’s power over search results and the online advertising market, according to the text of his speech.
In November 2010, EU regulators opened a formal antitrust probe into Google amid concerns that its search results might be favoring its own services, such as maps and shopping results.
The alleged conduct had drawn complaints from rival search services such as Foundem and Microsoft, as well as online map and travel operators.
Google formally submitted an offer to remedy the EU concerns in, saying it would present links to rival services on its search page and label its own services more prominently. Earlier this month, it updated its submission after rivals criticized its first offer (here).
Almunia said this morning that “time is of the essence” in deciding whether to conclude the case on the basis of Google’s promise to change its business, or to move to a full investigation where formal objections are leveled at the company.
“In the coming weeks I will take a decision about the use of Article 9, transforming Google’s proposals into legally binding commitments, or go through the Article 7 route towards a Statement of Objections and a possible negative decision,” he said, referring to the two legal routes.
“It is my responsibility to ensure that Google does not abuse this gatekeeper role in the EU to push its own services against those of competitors who may be just as innovative.”
“As you know, we want to find effective solutions to our concerns, so as to preserve competition in the coming years between these services. Whether we will ultimately achieve this through a commitment process is still open at this point in time.”
“Google's algorithm played a major role in the company's success," Almunia said. "Many start-ups – such as websites specialised in searches on particular topics – have benefited from Google’s role as one of the main entry points to the internet to roll out and rapidly bring new services to a wide audience.”
Two groups of companies that have complained to the commission over Google’s conduct said Almunia should consult them formally on the new round of commitments (here).
* IBA annual competition conference, Florence, Sept. 13, 2013
