European Union charges Google over shopping searches in antitrust case

The European Union accused Google on Wednesday of cheating competitors by distorting internet search results to favour its shopping service, and launched another antitrust investigation into its Android mobile operating system.

Competition Commissioner Margrethe Vestager said the US tech giant, which dominates internet search engines worldwide, had been sent a Statement of Objections – effectively a charge sheet – to which it can respond. She also said other probes into Google’s business practices would continue.

“I am concerned that the company has given an unfair advantage to its own comparison shopping service, in breach of EU antitrust rules,” she said. “If the investigation confirmed our concerns, Google would have to face the legal consequences and change the way it does business in Europe.”

The Commission, whose control of antitrust matters across the wealthy 28-nation bloc gives it a major say in the fate of global corporations, can fine firms up to 10 per cent of their annual sales, in Google’s case up to US$6.6 billion.

If it finds that companies are abusing a dominant market position, the EU regulator can also demand sweeping changes to their business practices, as it did with US software giant Microsoft in 2004 and chip-maker Intel in 2009. Its record antitrust fine was 1.09 billion euros on Intel.

Asked whether she was ready to go as far as fining Google, Vestager told a news conference: “It is very important that every road is open - first when it comes to commitments but also when it comes to the other road, at the end of which is a fine.”