Searching for answers
WHY THE EUROPEAN UNION’S NEW REGULATOR IS PLAYING HARDBALL WITH THE TECH GIANT
The decision of EU’s new regulator to aggressively target Google, one of the most successful US businesses, suddenly kick-starts the bloc’s high-profile anti-trust suit
In her native Denmark, she’s known as Queen Margrethe III — a wry nod to the considerable power she wielded as government economic minister. Some Danes also call her the Queen of Twitter for her popular social media feed, which features her reactions to everything from TV talent shows to economic policy.
Today Margrethe Vestager is known as the woman going after Google.
And with that, she’s assumed a potentially much larger throne.
Vestager, who is now Europe’s top antitrust regulator, announced Wednesday that she was formally accusing Google of violating European antitrust laws by favouring its search results over those from competitors. While an investigation of Google had dragged on for five years without result, Vestager’s decision to aggressively target one of the most successful US businesses — a move criticised by President Barack Obama — suddenly kick-starts the European Union’s highest-profile antitrust suit since its lengthy battle with Microsoft a decade ago.
Vestager is now the leader and public face of EU’s claim that Google abused its market power to restrict competition. “And this, in my opinion and in our preliminary review, is not as it should be,” she said during a press conference Wednesday. “And that is the reason for this endeavour.”
Shortly after the announcement, she hopped on a plane for Washington, where she will give two speeches on antitrust issues and meet with US regulators, before giving two more speeches in New York City on Monday — events that should raise her profile even higher.
Those who know Vestager and watched her long climb to her new perch describe her as respected, intelligent and unwilling to yield to political pressures when she believes the facts support her, even when it may hurt her.
‘Tough cookie’
“She’s known for being a tough cookie,” said Marlene Wind, a political science professor at University of Copenhagen.
Vestager, 47, took on the role as the EU’s competition commissioner just last September. She faced a full plate of potentially controversial cases, from Google to Russian energy company Gazprom to questions about tax evasion in Luxembourg. Her predecessor as antitrust chief, Joaquin Almunia, had tried and failed repeatedly to reach a settlement with Google. To many observers, he appeared hesitant to file a formal “statement of objections” against the company.
Vestager showed no such reservations. She said she viewed the formal accusations as a way of prodding the case toward resolution. Google has 10 weeks to respond in writing. A hearing before EU commissioners could follow, along with a formal trial. A settlement could be reached anytime along the way.
“For me, the road from here is open,” Vestager said. “I would like to hear what Google has to say for itself.”
Google issued a statement Wednesday defending its business practices, calling the EU’s accusations “wide of the mark.” The company says consumers have more choice than ever and other online firms are thriving.
The EU’s current accusations are focused on its assertion that Google unduly favoured its own comparison shopping tool called Google Shopping over those from competitors. Vestager said the inquiries into other areas — Google Maps and Google Travel, among them — were ongoing. The EU also announced that it was opening an investigation into potential anti-competitive practices with Google’s mobile operating system Android.
For me, the road from here is open, I would like to hear what Google has to say for itself.” Margrethe Vestager |