Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Almunia defends decision to seek additional commitments from Google, (Sep 12, 2014)

By Jeffrey May, J.D.

The European Commission's competition authority has followed proper procedures in its attempt to work out a settlement in its four-year-old antitrust probe of Google Inc., according to EC Competition Commissioner Joaquín Almunia. In remarks delivered at Fordham Law's 41st Annual International Antitrust Law & Policy Conference today in New York City, Almunia insisted that the decision to seek additional commitments from Google in order to resolve the probe was based solely on arguments raised by formal complainants.

Almunia acknowledged that the investigation of the online search and advertising company for abuse of dominance has generated many opinions, letters, statements, and even campaigns. However, “the only arguments of competitors and stakeholders that matter are those included in the proceedings,” he noted. Almunia also wanted to clarify that he never intended to impose a timeline on the case. There was no link between a decision date and the expiration of Almunia's mandate as competition commissioner at the end of next month.

“Antitrust investigations must be kept outside of political tensions,” Almunia said. “And the only arguments of competitors and stakeholders that matter are those included in the proceedings.”

Almunia also expressed his view that his successor will not be swayed by these outside pressures. Earlier this week, EC President-elect Jean-Claude Juncker named Margrethe Vestager—Denmark's former economy minister—as the next commissioner to take the helm of the competition authority. With Vestager's mandate starting November 1, it is most likely that Almunia will hand over the Google matter to her. Describing Vestager as clever, hard-working, and tough, Almunia predicted that his successor, who is a trained economist, will be an outstanding commissioner for competition.

The EC's Google investigation dates back to 2010. The EC's main concern is that Google, by displaying its own services more prominently in search results, could use of its dominant position in the search market to enter other markets—the so-called vertical search services—where it faces stiffer competition. Google’s purported preferential treatment of its own services could reduce innovation and harm consumers.

Settlement talks have been ongoing for the last two years. In February, the EC disclosed that it had reached a proposed settlement with Google, which was capable of addressing competition concerns. Almunia believed that commitments were better than prohibitions in this fast moving market. Based on the feedback from 18 of the 20 formal complainants—many of them U.S. companies, the competition authority reached the conclusion that some of the aspects of the Google commitments should be improved.

Under the current settlement proposal, Google has agreed to, among other things, display rivals to its own specialized search services (services allowing users to search for specific categories of information such as restaurants, hotels, or products) in its results in a way that was clearly visible to users and comparable to the way in which Google displayed its own services. The proposed remedy was intended to resolve EC concerns that users might not be aware of the promotion of Google’s services within the search results and that traffic could be diverted away from Google’s competitors towards Google’s own services. Google also has agreed to an independent compliance monitor in Europe for five years.

Companies: Google Inc.

News: Antitrust