Google is
facing new competition charges from the European Commission over claims that it
is abusing monopoly power.
The Commission
issued new complaints against Google regarding its dominance in online
advertising and shopping search results in the latest escalation of the fight
between the search giant and Brussels, which has seen Google charged in three
cases in little more than a year.
"Google
is a company that has come up with some incredibly innovative products that
have made a difference to our lives," said Margrethe Vestager, the
European competition commissioner. "But that doesn't give Google the right
to deny other companies the chance to compete and innovate."
A subsidiary
of Alphabet, Google search provides more than 90pc of Europe's general internet search services, and 80pc of
the placement of search adverts on third party websites.
The first of
the two complaints addresses Google's advertising business, which is
responsible for most of the company's $75bn (£56bn) global revenue and the
Commission claims is hampering competition.
Vestager said:
"We have raised concerns that Google has hindered competition by limiting
the ability of its competitors to place search adverts on third party websites,
which stifles consumer choice and innovation."
Specific
agreement terms between Google and its search advertising partners that the
Commission believes breach EU antitrust rules include the requirement that
third parties don't also advertise with competitors, that its partners have to
take a minimum number of search adverts and give Google the prominent place of
their website, as well as having to get Google's approval to change the display
of competing search adverts.
Google
recently changed the conditions to give its partners more freedom to display
search ads from rivals.
"It has
prevented existing and potential competitors, including other search providers
and online advertising platforms, from entering and growing in this
commercially important area," said Vestager.
In
the second complaint, the Commission adds weight to allegations
made last year that Google "unduly favoured" its shopping
service that compares products over external websites in its search
results.
"We have
further strengthened our preliminary conclusion. We believe Google's actions
have harmed consumers," said Vestager. "It means that customers
don't always see the most relevant results to their query."
The accusation
is part of a six year investigation into whether Google has abused its
position in the way it returns search results, promoting its own shopping
comparison service. The latest complaint adds further evidence to
the Commission's complaint, which was firstissued in
April 2015. Google has 10 weeks to respond to the
complaint.
"I will
consider their arguments carefully before deciding how to take both cases
forward," said Vestager. "But if our investigations conclude
that Google has broken EU antitrust rules, the Commission has a duty to act to
protect European consumers and fair competition on European
markets."
Google denies
that its search and advertising businesses are anti-competitive. A
spokesman said: "We believe that our innovations and product
improvements 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."
The company
has also previously
been charged with abusing its dominance of the mobile operating
system Android. Fines
for Googlecould total $7bn for each charge as the EU has the power
to fine companies up to 10pc of global revenue.
Sources have
previously confirmed
to the Telegraph that the Commission is
looking to hit Google with a fine in the region of €3bn (£2.5bn).
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