EU Competition Regulators Preparing Additional Charges Against Google
July 08 2016 - 9:50AM
Dow Jones News
BRUSSELS—European Union competition regulators are preparing to
issue an additional layer of formal charges as soon as late July
against Alphabet Inc.'s Google over its behavior with its shopping
service, according to people familiar with the matter.
The so-called supplementary statement of objections will likely
sharpen the EU's previous accusations that Google uses its
dominance in search to favor its own service in the shopping
market, according to one of the people familiar. That could shape
the case to create possible precedents for how the U.S. tech firm
also operates in other domains, including with its local or travel
services.
The European Commission, the bloc's antitrust body, declined to
comment. Google didn't immediately respond to requests for
comment.
The Commission first filed formal charges against Google in
April 2015 for favoring its comparison-shopping service in search
results.
The EU's antitrust chief Margrethe Vestager then said she
continues to have concerns that Google is also abusing its
dominance with those other search services.
The clarification to the shopping charges won't necessarily mean
a cascade of new EU cases against Google. But the EU could decide,
following a negative decision in the shopping case, to open new
investigations into the company's behavior with its other
specialized search services if Google doesn't alter its behavior in
the other services as well.
The Commission has asked rival companies to permit disclosure to
Google of confidential information they submitted to the EU, such
as loss of traffic caused by Google's behavior, which would bolster
the regulator's shopping case. The requests are a typical sign that
the EU is gearing up to issue new charges.
A supplementary statement of objections allows the commission to
address arguments the company made in their reply to the first set
of formal charges and are commonly issued in more complex probes to
ensure that any final decision can pass legal muster when it is
inevitably challenged in court.
In the shopping case, Google has argued that the EU erred in its
analysis of the fast-changing online-shopping business and failed
to account for the fast growth of companies such as Amazon.com Inc.
and eBay Inc.
The EU's supplementary statement of objections comes as it is
also expected to file formal charges against the tech firm over its
advertising services, piling more pressure on Google after already
hitting the company with formal charges for its conduct with its
Android mobile operating system. Google is expected to respond to
the Android charges in the coming months.
The expected additional charge sheet disappoints some rival
firms who formally complained to the Commission about Google and
who were hoping for a swift decision from the EU that would require
Google to change its behavior more imminently. The new statement of
objections would prolong the process by some more months because
Google would then have extra time to respond to the Commission's
concerns.
Write to Natalia Drozdiak at natalia.drozdiak@wsj.com
(END) Dow Jones Newswires
July 08, 2016 09:35 ET (13:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
eBay (NASDAQ:EBAY)
Historical Stock Chart
From Mar 2024 to Apr 2024
eBay (NASDAQ:EBAY)
Historical Stock Chart
From Apr 2023 to Apr 2024