EVIL GOOGLE: European Commission €2.42B (US$2.73B) Antitrust Fine

EU's Vestager Sees 'No Reason' Google Shouldn’t Comply

June 27, 2017: European Competition Commissioner Margrethe Vestager discusses the EU’s antitrust case against Google and compliance from the company. She speaks with Bloomberg.com's David Westin on "Bloomberg Daybreak: Americas."

source: European Commission

"... Google has abused this market dominance by giving its own comparison shopping service an illegal advantage. It gave prominent placement in its search results only to its own comparison shopping service, whilst demoting rival services. It stifled competition on the merits in comparison shopping markets. Google introduced this practice in all 13 EEA countries where Google has rolled out its comparison shopping service, starting in January 2008 in Germany and the United Kingdom. It subsequently extended the practice to France in October 2010, Italy, the Netherlands, and Spain in May 2011, the Czech Republic in February 2013 and Austria, Belgium, Denmark, Norway, Poland and Sweden in November 2013 .... 

"The Commission Decision requires Google to stop its illegal conduct within 90 days of the Decision and refrain from any measure that has the same or an equivalent object or effect. In particular, the Decision orders Google to comply with the simple principle of giving equal treatment to rival comparison shopping services and its own service:
Google has to apply the same processes and methods to position and display rival comparison shopping services in Google's search results pages as it gives to its own comparison shopping service.

"It is Google's sole responsibility to ensure compliance and it is for Google to explain how it intends to do so. Regardless of which option Google chooses, the Commission will monitor Google's compliance closely and Google is under an obligation to keep the Commission informed of its actions (initially within 60 days of the Decision, followed by periodic reports).

"If Google fails to comply with the Commission's Decision, it would be liable for non-compliance payments of up to 5% of the average daily worldwide turnover of Alphabet, Google's parent company. The Commission would have to determine such non-compliance in a separate decision, with any payment backdated to when the non-compliance started.

 "Finally, Google is also liable to face civil actions for damages that can be brought before the courts of the Member States by any person or business affected by its anti-competitive behaviour. The new EU Antitrust Damages Directive makes it easier for victims of anti-competitive practices to obtain damages.

"Other Google cases
The Commission has already come to the preliminary conclusion that Google has abused a dominant position in two other cases, which are still being investigated. These concern:
1) the Android operating system, where the Commission is concerned that Google has stifled choice and innovation in a range of mobile apps and services by pursuing an overall strategy on mobile devices to protect and expand its dominant position in general internet search; and
2) AdSense, where the Commission is concerned that Google has reduced choice by preventing third-party websites from sourcing search ads from Google's competitors.

"The Commission also continues to examine Google's treatment in its search results of other specialised Google search services. Today's Decision is a precedent which establishes the framework for the assessment of the legality of this type of conduct. At the same time, it does not replace the need for a case-specific analysis to account for the specific characteristics of each market.
Background
See also Factsheet. [embed further below]
Today's Decision is addressed to Google Inc. and Alphabet Inc., Google's parent company.
Article 102 of the Treaty on the Functioning of the European Union (TFEU) and Article 54 of the EEA Agreement prohibit abuse of a dominant position. Today's Decision follows two Statements of Objections sent to Google in April 2015 and July 2016.More information on this investigation is available on the Commission's competition website in the public case register under the case number 39740." [emphasis added]--European Commission - Press release - Antitrust: Commission fines Google €2.42 [US$2.73]  billion for abusing dominance as search engine by giving illegal advantage to own comparison shopping service (embed below):

Antitrust: Commission fines Google €2.42 billion for abusing dominance as search engine by giving illegal advantage to own comparison shopping service - Factsheet (embed below):

Shares of Alphabet Inc. on the NASDAQ: GOOGL and GOOG, traded lower on Tuesday, June 27, 2017.

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Google Responds to Claims It Breached EU Antitrust Rules (video)

UPDATE September 3, 2015: Security firm BlueCoat says stay away from .XYZ sites [Google Alphabet's website is abc.xyz] and that Google newgTLD dotZIP should be "blocked" --see Security Firm Recommends Blocking ICANN's "Shadiest" New gTLDs

UPDATE September 1, 2015:

Law firm targets Google foes for private damages claims http://t.co/lB5QK19ZkY via @Reuters

— Domain Mondo (@DomainMondo) September 1, 2015

UPDATE August 28, 2015: European Publishers Play Lobbying Role Against Google - The New York Times: "... Even Rupert Murdoch’s News Corporation, whose European interests include the British newspapers The Times and The Sun and The Wall Street Journal Europe, joined the fray, urging the European Commission last fall to take action against Google, which it labeled a “platform for piracy.” ... Mr. Almunia left the investigation to his successor, Ms. Vestager, who announced antitrust charges against Google in April. Many publishers backed the move, saying the company’s business model had limited online choice for consumers. “Europe’s publishers are well-organized, well-connected and a really powerful lobby,” said Stefan Heumann, director of the European digital agenda program at the New Responsibility Foundation, a Berlin-based research organization. “Many of them are struggling to grasp the realities of the new digital world.”

UPDATE: FairSearch statement regarding Google's response to the Statement of Objections - FAIR SEARCH: Brussels, 27 August 2015 – "We have seen this movie before. Defendants in big European antitrust cases have made the same arguments. Just like Google here, they have argued that the EC is incorrectly defining the market in which harm is occurring. They also argued, just like Google now, that even if one accepts the EC’s market definition, there was no harm to competition in that market. And they argued, again like Google today, that the antitrust authorities just don’t get it, and that the remedy they demand cannot be implemented without causing technical and market chaos. The truth, as in previous cases, is that the Commission has properly defined the market into which Google has leveraged its overwhelming dominance in search, namely the shopping (price) comparison market. Google has decimated competition in that market by preferencing its own product comparison service in its search results, and consumers have been harmed — and paid higher prices – because Google has cornered the shopping comparison market. And the truth is that the Commission understands the markets and the technology very well, and Google is perfectly capable of implementing a remedy that provides equal treatment both to its own product comparison service and to those of others. The Commission is completely correct that this is the only remedy that is principles-based and future-proof. Please see our chronology for details of the case."

Google today responded to the European Commission claims (Statement of Objections) that Google breached EU antitrust rules--


Google and Shopping video (above) published August 27, 2015 - "Since Google was founded, we have worked to make it easier for people to find what they are looking for. We have a simple belief: focus on the user, and all else will follow. This is at the heart of how we show products in Search, in which we show users the most relevant results by working directly with merchants to present accurate specs, trustworthy reviews, competitive prices and the quickest means of purchase. While technology and behaviors may evolve and change, our focus on the user will always remain the same."

"Google has always worked to improve its services, creating new ways to provide better answers and show more useful ads. We’ve taken seriously the concerns in the European Commission’s Statement of Objections (SO) that our innovations are anti-competitive. The response we filed today shows why we believe those allegations are incorrect, and why we believe that Google increases choice for European consumers and offers valuable opportunities for businesses of all sizes ... Our response provides evidence and data to show why the SO’s concerns are unfounded. We use traffic analysis to rebut claims that our ad displays and specialized organic results harmed competition by preventing shopping aggregators from reaching consumers. Economic data spanning more than a decade, an array of documents, and statements from complainants all confirm that product search is robustly competitive. And we show why the SO is incorrect in failing to consider the impact of major shopping services like Amazon and eBay, who are the largest players in this space ... Moreover, the ways people search for, compare, and buy products are rapidly evolving. Users on desktop and mobile devices often want to go straight to trusted merchants who have established an online presence. These kinds of developments reflect a dynamic and competitive industry, where companies are continuing to evolve their business models and online and offline markets are converging..." -- Kent Walker, Google SVP & General Counsel, Google Europe Blog: Improving quality isn’t anti-competitive

Background:
European Commission - Antitrust: Commission sends Statement of Objections to Google on comparison shopping service; opens separate formal investigation on Android: "Brussels, 15 April 2015: The European Commission has sent a Statement of Objections to Google alleging the company has abused its dominant position in the markets for general internet search services in the European Economic Area (EEA) by systematically favouring its own comparison shopping product in its general search results pages. The Commission's preliminary view is that such conduct infringes EU antitrust rules because it stifles competition and harms consumers. Sending a Statement of Objections does not prejudge the outcome of the investigation. The Commission has also formally opened a separate antitrust investigation into Google's conduct as regards the mobile operating system Android. The investigation will focus on whether Google has entered into anti-competitive agreements or abused a possible dominant position in the field of operating systems, applications and services for smart mobile devices. EU Commissioner in charge of competition policy Margrethe Vestager said: "The Commission's objective is to apply EU antitrust rules to ensure that companies operating in Europe, wherever they may be based, do not artificially deny European consumers as wide a choice as possible or stifle innovation". "In the case of Google I am concerned that the company has given an unfair advantage to its own comparison shopping service, in breach of EU antitrust rules. Google now has the opportunity to convince the Commission to the contrary. However, if the investigation confirmed our concerns, Google would have to face the legal consequences and change the way it does business in Europe." "I have also launched a formal antitrust investigation of Google’s conduct concerning mobile operating systems, apps and services. Smartphones, tablets and similar devices play an increasing role in many people's daily lives and I want to make sure the markets in this area can flourish without anticompetitive constraints imposed by any company.""

For further information:

• Competition - European Commission: "39740 Google Search"
• Competition - European Commission: "40099 Google Android"

See also on Domain Mondo: Google Alphabet A Signal To Sell OR Short $GOOG and $GOOGL shares?


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