Tag: eu

  • European Parliament Overwhelmingly Supports Breaking Up Google

    European Parliament Overwhelmingly Supports Breaking Up Google

    It was reported earlier that the European Parliament was considering a draft proposal to break the search and other businesses of search engines. This proposal was put on vote, and it has received overwhelming support. It is important to know that the resolution is non-binding on any party, but it now puts pressure on the European Commission to introduce regulations on search engines.

    Although the resolution doesn’t name a specific search engine, but it’s easily assumable that the target is Google. The company enjoys a comfortable hold on the market with a 90% market share. It spooks the legislators that an American company forms such a monopoly in the continent. There are multiple business malpractice allegations against Google too. The allegations have led to anti-trust investigations against the company. One of the major reasons for this proactive crackdown of Google is the privacy concerns.

    The resolution received 384 votes in favour of the motion and 174 against it. Andreas Schwab, the German Conservative Lawmaker and co-sponsor of the bill said that this is a clear sign for the European Commission to prevent monopolies and create a level playing field for the companies.

    France and Germany have even called for review of the competition rules of the EU so as to enhance the accountability on global internet companies. They intend to make it easier for governments to target these companies.

    Google has yet not commented on the issue. The vote count is definitely going to get the balls rolling in Google’s defense team. The case matters because it is questioning one of the basic and most essential components of the internet, the search. They are seriously considering regulations for the internet. It won’t be an easy task as Google is now literally the gateway to the internet and most of its ‘intuitions’ comes from integrating search with its other service. It will be interesting to see where this path takes us and the information superhighway.

  • Google Dodges Fine with EU Antitrust Deal

    Google Dodges Fine with EU Antitrust Deal

    As The Wall Street Journal reports, Google has clinched a settlement in its high-profile case with European Union antitrust regulators to address concerns that it is abusing its dominance in online search.

    EU Antitrust Commissioner Joaquin Almunia said that he’s “strongly convinced” the new proposals sufficiently address the competition concerns, marking a major milestone in the three-year-old case. “This is an important step forward,” he told reporters in Brussels.

    Google had been accused of giving favourable treatment to its own products in search results. The company said it looked forward to resolving the matter.

    As FT reports, on the European Commission’s side, there is still going to be a final approval process. The groups that filed the original complaint against Google will be consulted, but it will not be a formal “market test”. The commission will monitor whether Google sticks to its promises.

    The agreement means the world’s dominant search engine has avoided a process that could have lead to a fine of up to $5 billion, or 10 percent of its 2012 revenue. It must stick to the deal for the next five years. Google has a market share of about 90 percent of Internet searches in Europe, compared with around 70 percent in the U.S.

    However, Google may still face a second EU investigation, this time into its Android operating system for smartphones, with potentially bigger risks for the company.

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