Google faces EC antitrust ultimatum
EC investigation to focus on advertising, portability and the alleged shutting out of competitive products
The longstanding war of words between the European Commission (EC) and Google is coming to a head. Commissioner Joaquín Almunia has presented Google chairman Eric Schmidt with an ultimatum over four areas that the EC considers might be an “abuse of dominance”
The EC's antitrust investigations are to focus on content-scraping, allegations that Google gives preference to its own products within search results, the allaged shutting out of competitive advertisers and the lack of portability within Google AdWords to rival platforms.
The focus on advertising and portability is significant. Google's quarterly advertising revenues in the UK alone amount to roughly the same annual worldwide profits as Facebook achieved in the whole of 2011.
Google has said it disagrees with the EC's position, but says that it will cooperate. Failure to remedy the four areas, which were outlined in a letter to Schmidt, would lead to a formal EC investigation – which could, potentially, lead to punitive fines.
Google currently controls at least 86% of the European search market, and faces similar investigations in the US from the Federal Trade Commission.
The EC has also severely criticised Google in recent months for changes to its privacy and data protection rules, which the Commission said might be in breach of European regulations.
• Google has received approval in China to complete the $12.5bn (£7.9bn) acquisition of Motorola Mobility (MMI) – itself the subject of EC patent investigations. Approval is conditional on the Android platform remaining free for a period of five years.