EU Accuses Google of Cheating Competitors by Distorting Search Results

The European Union's competition commissioner, Margrethe Vestager, has accused Google of distorting internet search results in favor of its own shopping service, filing antitrust charges against its Android mobile operating system. The preliminary view is that Google artificially favors its own comparison shopping services, regardless of their relevance to the search query, diverting traffic away from competitors. The EU's five-year inquiry found that Google has engaged in misconduct in a broad number of member states since 2008 and continues to do so.

Key Takeaways:

• The EU has accused Google of cheating competitors by distorting internet search results in favor of its own shopping service.
• Google's algorithms give prominence to its own comparison shopping services, regardless of their relevance to the search query, diverting traffic away from competitors.
• The EU's five-year inquiry found that Google has engaged in misconduct in a broad number of member states since 2008 and continues to do so.
• Google has 10 weeks to respond to the antitrust charges, with a potential fine of up to 10% of its annual turnover, or $6 billion.
• A separate EU investigation has been launched into incentives offered by Google to smartphone manufacturers to pre-install and bundle apps and services on its Android operating system.
• Google's Android software is the world's largest operating system, with an 81% share of the smartphone market.
• Google's web search market share is over 90% in Europe, and the complaint against it in Europe was brought by Microsoft, Tripadvisor, Streetmap, and others.
• The EU believes that any legal success against Google could establish a broader precedent for enforcement of the bloc's competition rules with other market search services.
• A recent US inquiry by the Federal Trade Commission decided not to press charges against Google for demoting, refusing to display, or linking to rival websites.

Statistics:

• The EU has accused Google of cheating competitors by distorting internet search results in favor of its own shopping service.
• Google has 10 weeks to respond to the antitrust charges, with a potential fine of up to 10% of its annual turnover, or $6 billion.
• Google's web search market share is over 90% in Europe.
• Google's Android software is the world's largest operating system, with an 81% share of the smartphone market.
• The EU inquiry into Google's alleged misuse of competitors' content has been ongoing since 2008.
• The EU believes that any legal success against Google could establish a broader precedent for enforcement of the bloc's competition rules with other market search services.

Sources:

• Arthur Neslen in Brussels
• EU competition commissioner Margrethe Vestager
• Google
• Icomp, an industry association part-sponsored by Microsoft
• David Martin Ruiz, legal counsel for Icomp
• Hiroshi Lockheimer, vice president of Android engineering
• The UK-based Institute of Directors
• Allie Renison, head of EU and trade policy for the Institute of Directors
• Monique Goyens, director of the European consumer organisation BEUC
• Federal Trade Commission
• India's competition regulator
• Russia's antitrust watchdog