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Europe Accuses Google of Monopoly Abuse

bonch writes "European antitrust regulators are set to issue a 400-page statement of objections accusing Google of 'abuse of dominance' next month, the result of an investigation launched last year after complaints from rivals that Google manipulated ad pricing and barred advertisers from running ads on rival sites. If found guilty, Google could be fined up to 10% of its annual turnover, which is about $3 billion. Microsoft avoided a similar fine when it settled its European antitrust case and included a 'browser ballot' in Windows."

15 of 211 comments (clear)

  1. Google is not even hiding it anymore by InsightIn140Bytes · · Score: 4, Insightful

    They're using their huge market share to unfairly promote their other products left and right. They have the most dominant position to do this too - the largest search engine on planet. They can put out anyone they want out of business. For years they have scraped smaller websites and then returning their own sites higher in search engine results. They push Google+ to every that comes to Google. How is Diaspore or other smaller social networks ever going to challenge that? They push Chrome to every IE user in a very spammy way, and they always do it in YouTube too. Recently all the flight ticket search engines started fearing as Google introduced their own one and embedded the results directly in search results.

    Now with Google+, they're tieing all their products together too. YouTube just got a much more "social" and google+'ish look, and in one of their recent videos they show how search results, maps, calendar, news, music, video and every other Google service will integrate with Google+. Because of their market share that is blatant monopoly abuse and I'm good to see that EU is finally doing something about it. US is still investigating Google, but with Google having bought so many politicans in Washington and friends in NSA and FBI I'd be more surprised to see if they did something.

    1. Re:Google is not even hiding it anymore by EasyTarget · · Score: 5, Insightful

      Oh; stop talking out of your arse.

      Once you have CHOSEN to go to the Google webspace then yes, you will see the whole Google portfolio; nothing wrong with that, you would not expect to see Macy's products advertised on Sears would you?

      bing - four characters
      google - six characters

      People take extra effort to use google; they actively select it. If you install windows and select the default/first option everywhere you end up with bing/MS on everything. and yet: PEOPLE ACTIVELY CHOOSE GOOGLE..

      They do need controlling on their advertising dominance but to claim they abuse their search position is nonsensical. (or, given the speed and pre-written nature of your response, shows that it is a claim mostly made by the paid-for muppets of their rivals.)

      --
      "Oops, I always forget the purpose of competition is to divide people into winners and losers." - Hobbes
    2. Re:Google is not even hiding it anymore by InsightIn140Bytes · · Score: 4, Insightful

      Every monopoly abuse still needs that choosing. No one has anyone ever physically forced you to use their services. Yet, companies are fined for monopoly abuses and it's against the law. EVEN IF PEOPLE ACTIVELY CHOOSE THEM TOO, like you shouted. It's still wrong to abuse your monopoly status even if people choose to use your services, that's the whole point of it.

    3. Re:Google is not even hiding it anymore by Anonymous Coward · · Score: 4, Insightful

      Yet the barriers to switch away from google for the end user are essentially zero, so there really is no monopoly power to abuse. If end users find google searches limited in scope to google's products and thus is not what they are looking for, they can switch away to yahoo, bing or whatever website they want. Google even makes it easier for you to change default search engines in its browser, than the browser of its competitor, microsoft, does. Don't forget that in the market of finding information, it's not only search engines that do this anymore. Facebook is driving a lot of traffic to sites just as google is. It is also offering its own ad system.

      Simply promoting Google+, or Chrome is in no way abuse of monopoly power. Scraping is not what Google is doing. it is indexing sites, fully complying to robots.txt, and offering information to its users and therefore traffic to these sites in a manner it sees is more useful to its users. Let's face it, when you search for "New York", you more likely than not want to see a map and maybe stuff you can do there (links below that open up relevant searches). Calling this unfair advantage and calling for action on it, would in essence not let google users find what they really intended to find and thus render google less useful to them.

      Ultimately you have to ask yourself is: What is the harm being done to consumers? If you ask me, the people complaining that Google abuses its position, don't really have a compelling answer to that, other than "please protect our interests".

    4. Re:Google is not even hiding it anymore by NeutronCowboy · · Score: 4, Insightful

      They're using their huge market share to unfairly promote their other products left and right.

      You mean, like every business on earth, they use their existing mind share to promote their other products. Unless you actually want to fine Boeing for advertising their regional jets when they're selling their intercontinental jets, you're full of hot air.

      They have the most dominant position to do this too - the largest search engine on planet.

      Only if you define the planet by Europe and US. Russia isn't so enamored with Google, and China... well, we know about China. You can, of course, always weasel out by arguing that they are still the largest engine on the planet by total users, but now you're just mixing arguments. I'm pretty sure that's not an accident, too.

      For years they have scraped smaller websites and then returning their own sites higher in search engine results.

      They push Google+ to every that comes to Google.

      Yes? Should they hide the fact that they have another product available?

      How is Diaspore or other smaller social networks ever going to challenge that?

      By being better? Or, to turn the argument around - the same way that Google ate Altavista's lunch.

      They push Chrome to every IE user in a very spammy way, and they always do it in YouTube too.

      Another outright fucking lie. Unless you think that telling people that they should upgrade from IE 6 is a terrible sin. In which case, you're just delusional.

      Recently all the flight ticket search engines started fearing as Google introduced their own one and embedded the results directly in search results.

      Yes. God forbid there's some competition in the flight search engine market.

      Because of their market share that is blatant monopoly abuse and I'm good to see that EU is finally doing something about it.

      Newsflash: having a large market share is not a monopoly. Furthermore, having a monopoly is not in and of itself illegal. What is illegal is to turn a non-government sanctioned monopoly into a rent-seeking enterprise by limiting external competition.

      Now, how exactly is Google limiting competition? People are a click away from Bing. A click away from Facebook. None of the data that Google holds is sticky. There is exactly zero cost to switching to a competitor like Bing. Why aren't people doing it? Tell me, why? Because.... they're Google? That's a circular argument.

      Tell you what, I'll make you a deal. You start posting the same crap in Facebook and Microsoft stories, and I'll pretend that you actually believe what you're posting.

      --
      Those who can, do. Those who can't, sue.
  2. Oh my god the sky is falling by Colin+Smith · · Score: 4, Insightful

    Look. Google is just flavour of the month.

    The very things you are worried about are Google's death knell, they are busy dividing and conquering their own workforce and focus, exactly the way previous giants, like Nokia did, so don't worry about it, it's a natural part of executive narcissism. Someone will come along (out of nowhere it'll seem) in a short while and make billions knocking Google off their pedestal into a has-been like Microsoft.
     

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  3. Re:End Game by Anonymous Coward · · Score: 2, Insightful

    While the US love companies who squeeze out every last bit of money, freedom, dignity and personal data out of the people.

  4. Microsoft is a has-been by Colin+Smith · · Score: 1, Insightful

    The desktop is irrelevant now, the world has moved on and Microsoft can no longer dictate anything of consequence. They are losing money all over the place as they try to get out of their fading niche. Again, executive narcissism is going to prevent their success and ensure their continued slide into obscurity.

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    Deleted
    1. Re:Microsoft is a has-been by Colin+Smith · · Score: 2, Insightful

      You mean just like car companies are on verge of dying

      Strawman. Cars are not software. Nevertheless, go buy some General Motors shares and bonds since you are so sure of their business model.

      And at 32% market share in the US, I would say Bing is a really successful product

      Bing is losing more than a billion a quarter. Highly successful, if it was a government project.

      Google will also lose billions on their own vanity projects.
       

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    2. Re:Microsoft is a has-been by Lehk228 · · Score: 4, Insightful

      frankly i don't care if MS exits the search market or not, bing is a horrible product with a horrible name, it's rise in popularity is only because it is the default search in new versions of IE

      --
      Snowden and Manning are heroes.
  5. Re:End Game by Elldallan · · Score: 4, Insightful

    Oh yes EU is soooo biased against US companies that the biggest fine they've handed out so far was to a European company and the majority of fines they are handing out still goes to european countries...

    But yes pulling out of europe is certainly a valid option, the only options they do have is to either obey local law OR pull out of Europe.
    Or are you trying to suggest that US companies should be above the law?

  6. Re:End Game by tsa · · Score: 4, Insightful

    Oh yes, like fining Google for a few 100 million will solve our crisis. Get real. Unlike in the US, corruption is illegal in Europe, and so misusing monopolies is punished like it should be. And companies are obliged to operate by the prevailing laws. That Google is an American company has nothing to do with it. A few months ago a cartel of European manufacturers of elevators was fined almost one billion euros, but since elevators are not as 'visible' as Google you don't know about that.

    --

    -- Cheers!

  7. Not the issue by thegarbz · · Score: 4, Insightful

    You're confusing a couple of very different issues here. Google does NOT have a monopoly on search and the EU isn't claiming they do. By the very definition if useful alternatives exist then there's not a monopoly. Naturally they push their other services to existing users. Every company does this. Every company that has some common sense and is likely to be in business next financial year anyway. The key thing that differentiates this from normal practice and abuse of power is if the users have choice or not.

    For all users there is a choice. I.e. is shipped out of the box with Bing as the default search engine. When you first start Chrome it asks you what your default search engine is. When you go to Google's home page you get a single bar at the top of the page, that's it. Users can all avoid this (and given the latest search numbers quite a few of them do) and thus it is not an abuse of market share.

    What Google does have a monopoly in is advertising. They have the single biggest presence for advertising on the internet with facebook a very distant second, and unlike the general user visiting a search engine there's not the same amount of choice out there for advertisers given that Google's monopoly stretches way beyond the search arena and onto websites of partners around the world.

  8. Re:Microsoft is copying Google, are copying Facebo by Raenex · · Score: 4, Insightful

    As I said. Microsoft is a has-been.

    And it was already demonstrated that they are not. You are predicting that they will be, but until it happens it's just a prediction.

    Google will be a has-been shortly.

    More worthless predictions.

  9. European publishers by khipu · · Score: 3, Insightful

    This is largely based on the misgivings of European publishers and European IT companies who missed the boat entirely. For years, they have enjoyed near-monopolies themselves, often aided by subsidies and government-imposed fees and price fixing. Now Google has been eating their lunch with cheaper offerings on books, music, video, news, and they are recognizing that they are becoming irrelevant.

    This is only one of many attacks they have attempted; they are throwing out shit left and right and see what sticks. A few years ago, they conned the French and German governments into wasting hundreds of millions of Euros on a "Google killer". They have tried pushing legislation that would give European news publishers copyright over the facts contained in news stories. They have tried to set up complicated rules that make digital publishing costly and cumbersome. They have ensured that they get their cut even for books and content they didn't create. They created an anti-Streetview hysteria. Etc.

    If they succeed, the people who will suffer will be the Europeans themselves, who will continue to be subject to price fixing and control of their culture and media by a few European media outlets.