Tuesday, February 22, 2011

Google Faces Renewed Antitrust Complaints in Europe

 
 
Google is facing new antitrust complaints in Europe, claiming abuse of its dominant status in the search engine market to crush smaller rivals.


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The Mountain View, Calif.-based search engine giant is being accused of tweaking its search results to ensure rival companies do not show up in searches. French company 1PlusV, the parent company of Ejustice.fr, is now one of three EU companies with antitrust actions against Google.
The original set of complaints led to the European Commission launching a formal investigation last November. The new complaint provides fresh evidence and suggests that the abuses identified are continuing, according to sources close to the matter.
In the meanwhile, Google chief executive Eric Schmidt recently met with the European Commission's competition commissioner Joaquin Almunia, in a bid to have any problems resolved directly between the two sides and so avoid a long and costly legal battle.
"We continue to work cooperatively with the European Commission, explaining many aspects of our business,” said Al Verney, a Google spokesman. "We believe there is always room for improvement, so we are working to address any potential concerns."
The company's present attitude contrasts with a more aggressive posture last year, where a Google lawyer complained that insisting that Google show rival results was "like insisting that Mercedes uses Fiat engines in its cars."
As part of the latest EU investigation, members of the Internet and advertising industry filled out 100-question forms examining their relationships with Google. These are now being analyzed, with the results due in a couple of months.
EU antitrust investigations are not to be taken lightly, as the Commission can fine businesses up to 10 percent of their global revenues for violating regulations. Companies such as Intel and Microsoft have been fined billions of dollars for breaching antitrust rules.
In January, Google started negotiating with the U.S. Department of Justice in move to head off an antitrust lawsuit against its acquisition of ITA, a leading travel data aggregator.

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