Thursday 14 July 2016

Google faces new and renewed EU antitrust objections

The European Commission has sent two further Statements of Objections to Google. In a supplementary Statement of Objections, the Commission has supported its preliminary conclusion that Google has abused its dominant position by systematically favouring its comparison shopping service in its search result pages.
In a separate set of objections, the Commission has set out its preliminary view that Google has abused its dominant position by artificially restricting the possibility of third party websites to display search advertisements from Google's competitors.
EU Commissioner Vestager has stated that Google has developed “incredible and innovative products” but that this does not give it the right to deny others the opportunity to innovate and compete. 
In the shopping comparison search case the Commission has rejected Google’s argument that websites such as Amazon and eBay compete with Google’s shopping service and it views these players more as customers than competitors.  Commissioner Vestager maintains that even if the Commission accepted Google’s market definition, its practices would still have restricted competition.
In the new advertising objections the Commission claims that Google has an 80 per cent share of the EEA search advertising market through its AdSense platform.  The Commission is concerned that Google has restricted how third parties obtain and use advertising from its competitors through a range of practices: requiring third parties not to source search ads from Google's competitors; requiring third parties to take a minimum number of search ads from Google and reserve the most prominent space on their search results pages to Google search ads; and requiring third parties to obtain Google's approval before making any change to the display of competing search ads.

The Commission has not provided a timeline for conclusion of these cases.

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