The European Union is preparing to accuse Google of illegally abusing its dominance of search, according to a report.
(Associated Press)
SAN FRANCISCO – The European Union will accuse Google of illegally abusing its dominance of search in Europe, a person familiar with the situation said.
Google will be served with a statement of objections, essentially a formal charge sheet, on Wednesday, the person said.
The EU is alleging the Internet giant broke antitrust regulations by siphoning traffic from its competitors to its own services, two people familiar with the case told the Financial Times.
This is the first volley in what could develop into the the major antitrust case of the Internet era. Google could ultimately be forced to pay large fines or make significant changes to its business in Europe.
The EU has been investigating Google for five years. Google nearly settled the case without any charges last year but the deal fell apart over objections from ministers in France and Germany and powerful tech groups.
A decision on the charges will be taken up by the college of 28 EU commissioners on Wednesday, the Financial Times said.
A spokesman for the commission refused to comment.
A Google spokeswoman declined to comment.
Technology news outlet Re/code obtained an internal memo in which Google calls the EU decision “very disappointing news.”
Google expects the E.U. Commission for Competition to open up an investigation into Android on Wednesday, according to the memo.
“We have a very strong case,” the memo says.
Google critics applauded the filing of charges.
“The European Commission’s issuance of a Statement of Objections (SO) laying out specific charges against Google would represent a significant step towards ending Google’s anti-competitive practices, which have harmed innovation and consumer choice,” Thomas Vinje, Legal Counsel and Spokesman for FairSearch Europe, said in a written statement. “FairSearch Europe awaits confirmation of Commission action.”
Analysts are taking a wait-and-see approach.
In a report earlier this month, S&P Capital IQ analyst Scott Kessler wrote: “Although we believe Google has been effective at fending off these accusations, we believe such a suit is closer than ever, and see it as a potential notable negative the company. However, we also think Google has some solid defenses and could prevail in court.”
The development comes amid growing concern over the dominance of U.S. tech companies.
The European Union should regulate U.S. Internet giants to allow homegrown companies to become more competitive, the EU’s digital commissioner said in a speech on Tuesday.
Günther Oettinger made the remarks at a major industrial fair in Hannover, Germany.
EU to accuse Google of illegally abusing search - USA TODAY
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