Google plans separate shopping service unit

Internet major’s new stand-alone outfit will be required to bid against rivals for ads on top of its search page

Google will create a standalone unit for its shopping service and require it to bid against rivals for ads shown on the top of its search page, in an effort to satisfy European Union concerns over the display of product results, three people familiar with the investigation said.

Google faces a deadline today to comply with an EU antitrust decision in relation to the search giant’s treatment of competitors’ comparisonshopping sites, according to the people, who asked not to be named as the negotiations are private.

While the shopping service will remain part of Google, it will operate separately and use its own revenues to bid for ads.

Google was ordered by regulators to stop promoting its own shopping search results over competitors’ and to make changes designed to give rivals fairer treatment by September 28, the EU said in June when it fined the company €2.4 billion ($2.8 billion; Dh10.47 billion).

The company could be fined up to 5 per cent of daily revenue if it fails to comply.

Al Verney, a spokesman for Google in Brussels, declined to comment.

The offer is part of Mountain View, California-based Google’s efforts to comply with the EU order while it challenges the regulator’s findings in court.

Google parent Alphabet Inc reports revenue for Google and its “Other Bets,” like self-driving cars and Nest thermostats.

A new shopping unit would continue to fall under Google, which makes money primarily from ads.

The company will tweak an advertising panel at the top of the search screen that shows several pictures of products with links to retailers’ websites, one person said.

Each of 10 slots will be auctioned off to give rival sites, such as Kelkoo.com or Shopzilla Inc, a chance to buy space to show links to retailers. Any changes only affect Google’s sites in Europe.