Google Could Be Days Away From $1 Billion EU Antitrust Fine -- Update
June 26 2017 - 3:40AM
Dow Jones News
By Natalia Drozdiak
BRUSSELS--The European Union's antitrust watchdog will as soon
as this week hit Alphabet Inc.'s Google with a fine of more than
EUR1 billion ($1.12 billion) and demand changes to the company's
business practices, according to people familiar with the
matter.
The European Commission, which has for roughly seven years been
investigating Google for breaching the bloc's antitrust rules in
various areas, is poised to announce this week that Google has
manipulated search results to favor its own comparison-shopping
service. Other formal EU probes into Google's behaviors with its
Android mobile-operating service and AdSense advertising service
are continuing.
The antitrust penalty against Google is expected to surpass the
EU's previous record fine imposed on a company for allegedly
abusing its market position: EUR1.06 billion against Intel Corp. in
2009.
"We continue to engage constructively with the European
Commission and we believe strongly that our innovations in online
shopping have been good for shoppers, retailers and competition,"
said Google spokesman Al Verney.
The EU will also likely demand Google give rival comparison
shopping services such as Foundem.co.uk and Kelkoo.com Ltd. equal
treatment in its search results. Complainants in the case allege
that Google both demotes competitors' offerings in search rankings
and artificially inserts its own service in a box above all other
search results, regardless of their relevance.
A decision in the comparison-shopping case could create
precedents for Google's behavior with its other search services,
such as travel and maps, which the EU is also scrutinizing.
The move against another powerful American company is likely to
stoke accusations across the Atlantic that the EU
disproportionately targets American companies, especially tech
firms, to protect its own European-grown industries.
The European Commission has already hit Apple Inc., Facebook
Inc. and Starbucks Corp. with various decisions for breaching the
bloc's competition rules, hitting their financial accounts. The
regulator also continues to probe McDonald's Corp. and Amazon.com
Inc. for allegedly not paying enough taxes in Europe.
In the Google case, some large U.S. companies, including Yelp
Inc., complained alongside European firms to the EU about the
company's behavior in the hopes that Brussels would take
action.
Microsoft Corp. initially also took part but hasn't been
lobbying against Google in Brussels after the two companies ended a
long-running feud last year.
News Corp, owner of The Wall Street Journal, has also formally
complained to the EU about Google but over the company's handling
of news articles on its search service.
U.S. antitrust authorities in early 2013 decided to end their
own investigation into the company after Google agreed to some
voluntary changes to its practices.
Write to Natalia Drozdiak at natalia.drozdiak@wsj.com
(END) Dow Jones Newswires
June 26, 2017 04:25 ET (08:25 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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