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EU antitrust regulators open third front against Google

BRUSSELS: European Union (EU) regulators brought a third antitrust charge against Alphabet Inc’s Google on Thursday, accusing it of blocking rivals in the lucrative

Published on: Jul 15, 2016, 06:02:28 IST
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BRUSSELS: European Union (EU) regulators brought a third antitrust charge against Alphabet Inc’s Google on Thursday, accusing it of blocking rivals in the lucrative online search advertising market.

HT Image
HT Image

The European Commission also reinforced its existing charge against the world’s most popular Internet search engine that its search results favour Google’s own shopping service over that of rivals.

“Google has come up with many innovative products that have made a difference to our lives. But that doesn’ t give Google the right to deny other companies the chance to compete and innovate,” European Competition Commissioner Margrethe Vest ager said.

The Commission said it had sent two “statements of objections” to Google.

The new charge sheet accuses Google of having abused its dominant position by artificially preventing third-party websites from displaying search advertisements from its competitors.

This relates to Google’s “AdSense for Search” platform, in which Google acts as an intermediary for websites with searches producing results that include search ads.

US CONCERNS

The EU’ spur suit of Google, along with probes into other US multinationals over tax issues and control of personal data, has caused irritation in Washington, with President Barack Obama last year accusing Europe of veering toward protectionism.

Vestager insists she is simply applying the law and promoting free competition.

Google’s AdWords and Ad Sense programmes have been on the Commission’ s radar since 2010, under Vestager’ s predecessor, after rivals complained about unfair advertising exclusivity clause sand undue restrictions on other advertisers.

They form the core of Google’ s business which posted about$75 billion in revenue last year, the vast bulk of Alphabet’s total annual revenue.