Google Inc (NASDAQ:GOOGL)’S Anti-Competitive Practices Under The Scanner Of European Anti-Trust


Pressure is mounting on the leading search engine as the E.U. investigation has launched a separate inquiry over Google Inc (NASDAQ:GOOGL)’s unfair business malpractices.

It is a sign that European counterparts are as serious as their U.S. regulators about pursuing serious charges against the company.

The E.U. Office accountable for competition policy communicated to Google Chairman Eric Schmidt that it has knowledge about the former’s biased act of giving preference to its services overriding competitors’ offerings. Google has been given ten days’ time to respond to E.U.’s notice.

Citing the instances of Google’s services like travel reviews and Web maps, Vice President of the European Commission expressed apprehensions that Google’s act amounts to giving preferential treatment and is against the spirit of market competition.

A similar inquiry, in this regard, is already underway by the U.S. Federal Trade Commission.

However, the U.S. Federal Trade Commission withdrew its investigation at the beginning of 2013 after Google agreed to make non-binding commitments.

The E.U. anti-trust officials claim that Google looked to be reluctant in facing up to advertising competition. Further, it resorted to using its ad service on other software platforms.

Further, the E.U. decried that Google makes use of a duplicated content, for instance, user reviews, that is drawn from competing search engines without securing permission. Such a step not only lessens competitors’ incentive to invest in genuine content.

A spokeswoman of Google was quick to downplay the E.U.’s theory and offered to take part in an open debate on the issue.

There were instances where Google offered the best possible search results for the users. But, those results turned out to be the company’s products.

Over a period, Google has made a quick progression evolving from its main search engine to the level of offering more specific services. Rival companies who have lodged complaints have alleged that the company is leveraging its search engine reputation to increase the web traffic.

When the users search for an address on the web, Google Inc (NASDAQ:GOOGL) is promoting its products like Google Maps, averred anti-trust experts.

As a result, tiny competitors are losing out in the competition, said the E.U. anti-trust officials.

Anti-trust experts predict that the fiasco may result in Google coughing up huge fees. Considering the gravity of the shopping complaint, Google may be directed to restructure its business in Europe.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.