Google Antitrust Probe in the EU and US
When there is a market, there is competition. In fact, a market is made up of several competing players in the same domain which give/offer a variety of choices, innovations, prices and quality levels to a consumer. Most jurisdictions have introduced Competition and Anti-trust laws to protect the interests of consumers and promote competition by preventing anti-competitive agreements and business practices. Strict enforcement of Anti-trust laws is the key to open and free markets. The unbundling or break-up of a company is one of several strict actions that antitrust regulators can take to stop the company from abusing its dominant position in the market. The term is a burning issue occupying a huge space in the media for the last few days after the European Parliament was expected to call for the unbundling or break-up of Google Inc. for its alleged dominant business activities.
The search engine giant is being investigated for its alleged anti-trust activities by the European Commission since the last 4 years. The EU through its press release of 30 November 2012 had declared initiation of proceedings which was followed by complaints from other search engine service providers.
While this action was being taken by the EU, Google’s competitors in the US had already charged Google with anti-trust-related allegations before the Federal Trade Commission. The company faced multiple allegations of abusing a dominant position in online search through various methods. Google was investigated by the Federal Trade Commission following the complaints received by the Commission from Microsoft Corp., MyTriggers.com, FairSearch, Yelp, etc. of the main allegation was that Google was unfairly downgrading its competitors from the search-engine results to direct users towards its own competing products. The investigations went on for 2 years and Google Inc. was given a clean chit by the Commission. The Commission through its Press Release of 3 January 2013 stated that “the evidence the FTC uncovered through this intensive investigation prompted us to require significant changes in Google’s business practices. However, regarding the specific allegations that the company biased its search results to hurt competition, the evidence collected to date did not justify legal action by the Commission…..The evidence did not demonstrate that Google’s actions in this area stifled competition in violation of U.S. law.” The decision of the Commission was highly criticised by the rival complainants. However, the Commission mentioned in its Press Release that “FTC’s mission is to protect competition and not individual competitors”.
Although Google Inc. is now free from anti-trust allegations in the US, the decision of the European Antitrust Regulator is still pending. The four-year old investigations have now taken such a turn that Andreas Schwab and Ramon Tremosa, the European Parliament members recently revealed a draft resolution proposing the separation of search engine services from other commercial services, which might ensure a level playing field for competitors. This move of unbundling or breaking-up a company is opted for as a measure by regulators when they conclude that the company has become anti-competitive. The draft resolution proposing unbundling is still in the form of a motion and is currently being debated by the European Union Legislators.
Although Google is undoubtedly a dominant player in the search engine services, it is necessary to determine whether it uses unfair means for retaining this position over other competitors. The question of whether the European Parliament will be able to directly enforce ‘unbundling’ over Google Inc. still persists. Although the answer is no, the resolution is likely to pressurise the European Commission to impose unbundling on Google. Can a body of politicians take over the investigations from the regulator and influence the regulator in their decision of the case? On the contrary, the resolution passed by the European Parliament members is likely to benefit the business community in Europe and hence, the Parliament members can also influence the regulator with a view to achieving a positive result. Let us hope however that this unusual stand of the European Parliament does not set a precedent. Whether Google Inc. is convicted by the EU regulator or not the decision must not be influenced in any manner much like the FTC in the US.
(Please Note: This is only a research based article. It only provides information and personal analysis concerning the given topic.)
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