LONDON: The European Commission (EC) has issued a Statement of Objections to Google over the way it presents search results.
The EC alleges that general search results ‘systematically favour’ Google Shopping over other shopping comparison products, using its dominant market share in search to divert traffic away from rivals – and breaching EU anti-trust rules and fined more than $6 billion ($A7.87 billion).
The European Commission also said it would open a separate anti-trust investigation into Google’s Android operating system, which dominates the global mobile phone market.
The Commission, which polices EU competition policy, said it had sent a formal Statement of Objections to Google charging it with ‘systematically favoring its own comparison shopping product in its general search results pages.’
‘The Commission’s preliminary view is that such conduct infringes EU anti-trust rules because it stifles competition and harms consumers,’ a statement said.
The Commission said it would continue to examine three other areas of concern – copying of rivals’ web content, exclusive advertising regimes and undue restrictions on advertisers – identified in probes dating back to 2010.
In a major development, it also announced it would investigate Google’s conduct regarding the mobile operating system Android.
‘The investigation will focus on whether Google has entered into anti-competitive agreements or abused a possible dominant position in the field of operating systems, applications and services for smart mobile devices,’ the statement said.
If found at fault under EU anti-trust rules, a company faces a fine of up to 10 per cent of its annual sales — in Google’s case, $US66 billion in 2014.
EU Competition Commissioner Margrethe Vestager said the aim was to ensure ‘companies operating in Europe, wherever they may be based, do not artificially deny European consumers as wide a choice as possible or stifle innovation’.
‘In the case of Google I am concerned that the company has given an unfair advantage to its own comparison shopping service, in breach of EU antitrust rules.’
Google has 10 weeks to reply on this count, but if the formal investigation finds the company in the wrong it would ‘face the legal consequences and change the way it does business in Europe,’ Vestager said.
On the investigation into Android, she said: ‘Smartphones, tablets and similar devices play an increasing role in many people’s daily lives, and I want to make sure the markets in this area can flourish without anti-competitive constraints imposed by any company.
