Google is under harsh legal scrutiny in Europe

Facing intensifying scrutiny from regulators, Google is conducting one of its most important searches yet: for an answer to its growing problem in Europe.

The European Commission has formally accused the U.S. technology giant of abusing its dominance in online shopping searches. It has also expanded the antitrust probe into whether Google uses its popular Android software to gain an unfair advantage over other applications and services on mobile devices.

The European Commission’s antitrust chief, Margrethe Vestager, who on Wednesday issued the formal charges, warned Google that her inquiry could expand into other areas such as travel and maps.

At stake for the Internet giant: billions of dollars in fines and fundamental changes to how it conducts business, from the money it makes from online search in Europe to the prominent placement of its services and apps on mobile devices.

“The European process is not one in which American tech companies have prevailed,” Boston University law professor Keith Hylton said. “That puts Google in the position of potentially having to make concessions that could be harmful to the company’s business.”

The commission’s probe touches on the everyday activities of consumers across Europe, whether they are searching for the best online shopping deals or pulling out a smartphone to look up directions or watch a video. Google accounts for 90% of all Internet searches in Europe.

Google denies it has broken antitrust rules and insists its products benefit consumers and encourage competition.

In a separate blog post, Google said its partnerships with phone makers are voluntary and benefit consumers and manufacturers.

At issue is whether Google’s practice of bundling apps such as YouTube and Maps with its Android software harms competing apps and services as well as device manufacturers, who are forced to take the Google apps along with the rest of the Android software. Android is the world’s most popular operating system with a market share estimated at 81%.

The EU has been investigating Google for five years. Google nearly settled the case without any charges last year but the deal fell apart.