Sunday, April 19, 2015

Fine European Union to Google – ElTiempo.com

When the EU investigates a company for abuse of dominant position, the thing is serious. And in the case of Google, the issue is not minor. For five years, the station block competition has collected enough to indict to manipulate search engine results compare products and prices GoogleShopping for his service and his predecessor Google Product Search, to the detriment of competing information.

This means, according to the indictment of the European Union, that when people looked recommendations and discounts, vacation or products, for example, did not receive complete results with comparative data from other sources information for making purchasing decisions.

This would constitute a violation of Article 102 of the Treaty on European Union, which would mean the US giant a penalty equal to 10 percent of its annual turnover, which in 2014 was 62,263,000 euros. ie 6,200 million euros, a 16.7 trillion Colombian pesos, something like Bogotá’s total budget for 2015 (17 billion pesos) .

However, the background research that exposed Margrete Vestager, Competition Commissioner, has other edges: Google accused of having copied content from reviews of products and services, as well as user reviews from competing sites on the comparison of prices.

On the other hand, claims that Google would have imposed contractual restrictions on software developers and advertisers agencies to prevent competitors to advance their PR work with freedom and equality conditions.

Even Vestager revealed that the “commission shall assess whether, by holding anti-competitive agreements and / or abusing a dominant position possible, Google has hindered illegally development and market access of rival operating systems in mobile communications within the European Economic Area “.

The latter makes direct reference to the possibility that Google has avoided through agreements and benefits for manufacturers, commercial development of rival Android mobile operating systems.

relentless Sanctions

Between 2004 and 2012, Microsoft was investigated and severely punished by the European Union in a notorious case, also for abuse of dominant position . At the Redmond company was accused of blocking competitors in browsers and media players on your Windows operating system, which came from the factory with both preinstalled programs.

The fines received Microsoft added more than 1,600 million euros in those years. The European bloc demanded that the software giant, among other competitors browsers include Internet Explorer on Windows to boost access options of people to the website.

Style implacable European authorities in their investigations of unfair competition do anticipate the worst for Google . The company has 10 weeks to respond to the allegations, which of course has openly rejected. The process, which takes several years, has different stages.

Google had promised early last year, former European Commissioner for Competition Joaquin Almunia, to improve and greater importance to the presence of competitors in search results and eliminate the exclusivity clauses of contracts for advertising, among others.

This, the search engine has allowed other sources Information competing on advertising and selling products and services remain as relevant, even above their service (see box). However, for the Danish Vestager this would not have fulfilled and insists on continuing a process that could start internet history in two.

A adverse outcome could generate a succession of similar processes in different countries and different industries, who see Google strong when it comes to influencing the decisions of the growing digital audiences, an overwhelming business figures competitor.

Google rejects accusations

For the giant, the European Commission accusations are “false”. “While Google is perhaps the most used search tool, people can find and access information in many ways, and allegations of harm to consumers and competitors are far from reality.”

In his blog, the company revealed that, from 2006 until today, in Europe companies like Amazon, Ebay, Idealo, Ciao, among others, hold the user preference when compare and buy products, which is the focus of the complaint.

Geopolitical Conflict?

Analysts from around the world have not neglected the suspicion behind the case that there is strong pressure from countries like Germany and France for EU action against internet giants United States.

In November, the European Parliament passed a resolution ( no legal or binding) effects for the corporate ‘dismemberment’ of Google, Facebook and other titans of the network in order to prevent abuse their dominant position. The measure received 384 votes in favor, 174 against and 56 abstentions.

In the discussion interjected US President. UU., Barack Obama, who said that “ European response is motivated by trade issues (…) What is described as a noble intention is just a way to promote business interests (European companies) “.

JOSÉ CARLOS GARCIA R.
Technosphere Editor

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