More troubles for Google: New set of antitrust charges
Google has been hit with more charges from the European Commission, adding to the antitrust headaches the Internet giant is facing in Europe.
This time Europe’s antitrust regulator is taking closer aim at Google’s lucrative search advertising business, which generated more than 90% of its revenue last year.
In a “statement of objections,” the European Commission accused Google of restricting competition by limiting the ability of rivals to place search ads on third party websites.
The stakes are high. Google could face fines as high as 10% of the company’s global revenue, which totaled $75 billion last year.
It could be forced to make changes to the way it conducts its business in the European Union, from the money it makes from online search in Europe to the prominent placement of its services and apps on mobile devices.
The European Commission also issued additional charges to support its case that Google favors its own shopping service by prominently displaying its shopping results over those of competitors.
“It is our preliminary view that both aspects break EU competition law,” EU antitrust chief Margrethe Vestager said.
“If Google’s rivals believe that their services will never be as visible as Google’s, no matter how good they are, that could discourage them from investing in better services,” Vestager said in a speech.
Google responded by saying its products “have increased choice for European consumers and promote competition.”
“We’ll examine the Commission’s renewed cases and provide a detailed response in the coming weeks,” Google said in an emailed statement.
Vestager has been targeting Google’s activities in the European Union, where it has about 90% of the online search market.
“We’ve taken action in that case because we believe it’s the best way to give consumers more choice, and to make sure Internet businesses keep investing in better products,” she said.
The new round of charges are in addition to another Google already faces: that it abuses the dominance of its Android mobile operating system. Google has vigorously denied any wrongdoing.
Investors are shrugging off the news. Shares of parent Alphabet were up about 1% Thursday to close at $735.80.