How Google will deal with trouble in Brussels
The search engine has until January to convince that no abuse of dominance
A Google runs out of time. The European Commission is finalizing the process that could lead to a multimillion dollar company chaired by Eric Schmidt fine. The VP and head for Competition, Joaquín Almunia, acknowledged yesterday that the explanations received so far not satisfied at all. " The latest proposals are not acceptable as they can not remove our concerns," he said in an interview with RNE. The scenario of an amicable solution to the conflict seems to recede. The ultimatum, according to EU sources said this newspaper, expires at the end of January. If by then the company does not pose an acceptable offer, the competition authorities would be launched disciplinary proceedings.
"Right now, time is short, but the ball is still on the side of Google. But within a short time, the ball will stay here and then it's time to make decisions, " Almunia said in the radio interview. After receiving in October Google's new offerings, the Commission began a round of consultations with 125 partners, including plaintiffs and other leading industry sectors are included. " [ The proposed Google ] does not eliminate our concerns which affect competition, and in particular how their rivals are covered in vertical search, in finding products price comparators, restaurants... " added Commissioner. Her department aims to achieve a formula that Google offers its competitors increased visibility in vertical searches [ those specialized for a product or particular restaurant ], I wish that for now has not been satisfied.
Brussels ' main concern is that, in its search results, Google provides links to their own specialized search engines, as Google Shopping, Google Hotel Finder, Google News, Google Finance or Google Flights- and offers them preferential treatment over tools Similar to rivals.
Almunia's words found in the main affected response within hours. And the statement sent by the U.S. multinational does not follow a great interest in trying to appease European competition authorities. Google said it has already made "significant changes" to address the concerns of Brussels for a possible abuse of dominant position in the market for Internet search engines. Among the changes that have been offered, Google cites increased visibility of the services of their competitors.
If Brussels does not give its approval, start the process by sending in the coming months of a statement of objections. At the end of the procedure, the Commission could impose a fine of up to 10% of its turnover (5,000 million euros). The proposal made by Google in October was the second after the previous not convinced. The case against Google and lasts three years. The other package of solutions that the company introduced last April left cold competitors, including Microsoft and British web Foundem that Google accused that the proposed changes rather than balancing the market would achieve the opposite effect, ie increase its dominant position.
Google's rivals said the search giant does not want to change their "harmful practices". "It is very important that the European Commission should use this opportunity to strengthen competition rules and to ensure that fair play is restored, not only for businesses that have been harmed, but also to provide a wider range of choices to consumers and boost the European economy, "said David Wood, attorney Icomp lobby, which includes Google 's competitors, including Microsoft.
Another sector applauded the words of Almunia was the publishers of newspapers and magazines. The Association of Spanish Newspaper Publishers ( AEDE ) and the Association of Journals Information (ARI ) expressed their " firm and resolute " to statements of support competition commissioner, and criticized the "abuses of Google in competition, intellectual property, abuse fiscal and violation of privacy. "
The Google deal that has garnered so much criticism was based on allowing opponents to show their logos and make their websites more visible. In addition, the search in which all results can be paid advertising, the company offered lower prices than the minimum accepted advertisers 10 cents to three. Google also proposed to relax the conditions under which it is put obstacles for advertisers to bring their campaigns to other search engines like Yahoo! or Bing.
Could this be the first of many other governments to do the same and challenge Google’s dominance?
Tags: Brussels, deal, Google, trouble