By Brent Kendall
WASHINGTON--The European Commission's antitrust chief on
Thursday said there are good reasons why competition enforcers in
Europe are taking aim at Google Inc., even though the company
avoided a legal challenge in the U.S.
European antitrust chief Margrethe Vestager, speaking during a
press briefing, said, "It is important to realize that the
situation is different here and in Europe. In Europe you'll find
that Google has about, or more, than 90% of general Internet
search. It's a dominant position." Google is the leading search
provider in the U.S., but its share here isn't as high as in
Europe.
Ms. Vestager said Google "is a successful company because they
have good products. But the compliments, they stop when you get the
suspicion that there may be an abuse of this very strong and
dominant position."
Ms. Vestager traveled to Washington shortly after the European
Commission, the executive body of the European Union, announced a
complaint against Google Wednesday that alleged the company's
search results unfairly favored its own shopping services over
rivals. European antitrust enforcers had been investigating the
U.S. search giant for five years.
Google has 10 weeks to answer the charges. The company on
Wednesday said it strongly disagreed with the charges, saying any
allegations of harm to consumers or competitors was "wide of the
mark."
In the U.S., the Federal Trade Commission closed its detailed
investigation of Google in early 2013 without bringing a case.
Competition staffers at the FTC believed Google biased its search
results to benefit its own services at the expense of rivals, but
in "a close call," the staffers recommended against a broad
lawsuit, citing legal hurdles and Google's "strong procompetitive
justifications" for its actions.
FTC staffers did want to challenge three Google practices,
including the company's alleged "scraping" of content from rival
websites and its restrictions on the ability of advertisers to use
competing platforms. The FTC agreed to close its probe after Google
agreed to make voluntary changes to those practices.
Ms. Vestager said Europe's investigation of those issues
remained ongoing. She said focusing the European Commission's
charges on Google's alleged favorable treatment of its own shopping
service was a way to get the case moving along.
"It is important to be more speedy in getting the question out,
to be able for Google, for competitors, but most of all for
consumers to see our concern," she said. The case could potentially
establish a broader precedent for other instances in which Google
favors its own products and services over others, she said.
News Corp, publisher of The Wall Street Journal and Dow Jones
Newswires, on Tuesday joined a group of companies that have filed
formal complaints with the European Commission regarding Google's
competition practices.
The commission also Wednesday announced a new investigation into
Google's conduct in relation to its Android operating system for
smartphones.
During her Washington remarks Thursday, Ms. Vestager said she
hadn't personally discussed Europe's planned Android probe with
antitrust enforcers in the U.S. and other global jurisdictions. She
said it was too early to give a timeline for that
investigation.
Ms. Vestager, who took over as Europe's competition chief in
November, is meeting with Justice Department and Federal Trade
Commission officials while in Washington. She also will be making
several public appearances in both Washington and New York over the
next several days.
Write to Brent Kendall at brent.kendall@wsj.com
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