EU accuses Google of abusing its dominant position with price comparisons – update

Google has abused its dominant position with its search engine by systematically favoring its own price comparison product on search results pages. The European Commission officially announced the allegation on Wednesday.

The way in which Google shows price comparisons in search results is contrary to European competition rules, because it hinders competition and harms consumers, the European Commission finds. “The Commission applies European competition rules to prevent companies from artificially denying European consumers a wide choice of products or hindering innovation,” said EU Competition Commissioner Margrethe Vestager.

The Commission has sent Google a ‘statement of objections’. The internet group now has the opportunity to defend itself against the charges and request a hearing within ten days. The allegation comes from an investigation that began as early as 2010 and relates to Google Shopping.

This service shows price comparisons prominently in general search results and puts competing services at a disadvantage. In addition, the Commission suspects that consumers ‘don’t necessarily see the most relevant results of their searches’. This has been the case since 2008. Google would not apply the system of penalty points that other comparators have to deal with on its own service. The company should treat its own service in the same way as its rivals, the Commission says.

Google has made previous commitments to meet the EU’s concerns, but they were not enough. If Google is unable to refute the allegations, the company could be fined ten percent of its annual turnover. Since Google achieved an annual turnover of 66 billion dollars, converted 62 billion euros, in 2014, this is an amount of 6.2 billion euros.

Update, 13.45: Google denies the allegations. The search giant claims that there is sufficient competition and that Google Shopping has not harmed competitors. The company publishes a number of charts to support the rebuttal. There would also be enough innovations and investments in the areas where Google would have a dominant position. “That’s why we respectfully but firmly disagree with the Statement of Objections and look forward to making our case clear in the coming weeks,” wrote Amit Singhal, Senior Vice President of Google Search.