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."
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.
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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Google's policy has never been "do no evil" but "don't be evil.
It's a subtle difference, but Google's policy allows occasional "evil"
Considering how Google launders its money via European countries to gain 2.4% tax rate, that might be quite costly. And that also means giving up tons of business, revenue, users and future monopoly status on search.
While the US love companies who squeeze out every last bit of money, freedom, dignity and personal data out of the people.
$3 billion US / year wouldn't go amiss given the current state of affairs on the continent....
The US isn't exactly rolling in it or did you forget the biggest national the nation ever had
Watch those corners
That was my gut response too, bearing in mind I of course only read the headline and not the TFA. Looks like a European money grab. That said, Google jumped the shark a long time ago.
As an Italian patriot I welcome fining corporations. I'm sure I speak for many of us when I say "We see this as a minor yet convenient contribution to our nation al debt. Even single digit billions are not to be shunned. And some of it will eventually land in Italian pockets." There must be a way to make it stick and I'm sure we can make the form or shape we find look beautiful, trust me.
Personally I see a dodgy edge on Google but compared to M$ they are saints and I'd be absolutely terrified if Apple were in a similar position. Oh, and "Italian patriot" is a bit of an oxymoron.
I hadn't the slightest objection to his spending his time planning massacres for the bourgeoisie... (P.G. Wodehouse)
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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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?
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!
Sure. How many companies are you going to pull out? :)
Also, find a stock broker, he can probably help you short these countries. Talk is cheap.
This antitrust legislation is probably quite inefficient and pointless. That I do agree with. Its not European invention though, such regulators are everywhere.
Monitoring conversations, including those that take place with social media, is part of our daily routine; our products can be used as early warning systems, helping clients with rapid response and crisis management.
http://waggeneredstrom.com/about/approach [waggeneredstrom.com]
http://waggeneredstrom.com/clients
Unlike in the US, corruption is illegal in Europe
Italy and Greece spring to mind as proof that you are full of it.
"His name was James Damore."
A while ago a friend of mine, working at myvideo.de, complained, that google kept ads prices too low to pressure competition. Considering youtube was losing money, no one would argue that they weren't too low.
I can't directly relate it to search monopoly, though, since technically Apple or Samsung could buy youtube and play the same "oh youtube isn't profitable" while competitors go bancrupt, but it does feel like abuse.
Oh, that's good news, because we're running a bit low on cash here lately.
I take it you are American.
That corruption is illegal in Europe doesn't mean it doesn't occur. I never said it doesn't. You just don't like to hear the truth. Look at your politicians. They all are owned by the companies who paid loads of money to get them their positions. If that is not legalized corruption I don't know what is.
-- Cheers!
He didn't say that American politics wasn't corrupt. He didn't even say that American politics was less corrupt than European politics. The argument he made seems to be that European politics is all kinds of corrupt, which would put the not liking to hear the truth as YOUR flaw.
This is my signature. There are many like it, but this one is mine.
What Greece and Itily do is NOT European politics. But I don't blame you for not knowing how European politics works; even Europe's politicians seem to not know how it works. And we're in this big political crisis in which European politics is in the process of being reformed too. These are difficult times.
-- Cheers!
As I said.
Microsoft is a has-been.
Google will be a has-been shortly.
And Facebook is the Tech Bubble 2.0 or Social Whatever Bubble 1.0 if you prefer.
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Yes. Corruption is the most universal constant there is. The U.S. - corrupt. Mexico, Argentina, Canada, Australia, Europe, Russia, China, Iran, Saudi Arabia, Israel, India, China, Japan, ad nauseum - all corrupt. All the countries I haven't mentioned - pretty much all struggle with corruption. The Third Reich was corrupt. Fascist Italy. The Soviet Union. Napoleon's Empire. The Roman Empire. The Aztecs. The Egyptian Dynasties.
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.
The current generation of phones are just about powerful enough to replace the desktop. The next generation will do it. Think a couple of years for market penetration.
Your desktop will be at most a docking station to connect larger displays, better I/O and peripherals to your phone. Why do you think Microsoft paid Nokia to use their mobile OS? Because they know the desktop is irrelevant and they have to get into the phone market as their core income dwindles.
As I pointed out though due to their executive's egos it's certainly too little too late and they are going to be the third placed, or smaller player.
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I thought McDonald's was the one abusing customers with that game...
Now Google ha a version too?!?
They forgot to change the thread title and are now simply strengthening search weightings between the words "Microsoft" and "has-been".
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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.
More gov't intervention. Sure, Google is a large company, but it's not a monopolist in search.
Besides, it's up to the market to decide whether a company grows or not, whether it's profitable or not. Clearly the market likes Google and the company shouldn't be punished by government, because it's clear that gov't is always wrong in every case of business meddling.
Some people think this is not about corruption? Of-course this is all about corruption, it's all about special interests using gov't to promote their interests. At least Switzerland is doing the right thing with not bothering people about their downloading of whatever.
Switzerland is the sanest country in Europe.
You can't handle the truth.
Hey, EU. You're doing something wrong if you face huge budget shortfalls if you don't get your annual big business fine every year. Fining prosperous companies should not be a major source of income for ANY government.
That's actually funny; the US wouldn't be in such trouble if it didn't have this idea that you can't apply laws to business. The 2008 crash was completely unnecessary, but of course whatever happens now is EU's fault. Btw since you still haven't figured out it's not one big country here's the short and sweet of it: Euro-zone != EU and EU != Europe.
Please be specific.
Also, why even use Google? Certainly nobody forced you?
Google is not the only company providing a search engine, and Google cannot vendor-lock anybody. What is the problem?
Also, how come Microsoft has been allowed to get away with brazen monopolistic abuse, 100 times worse than anything Google could possibly do, for decades?
For example, Microsoft was caught, red handed, bribing officials during the OOXML scam; but that's okay?
Or are you trying to suggest that US companies should be above the law?
Well, the problem is that ... yes ... we kinda do ...
Above European law ? Yes ... first, isolated from the 56 different conflicting sets laws that govern all sorts of parts of Europe ? Yes, definitely. Able to publish free speech into Europe on areas where European laws forbid it (e.g. criticizing unions, or politicians/institutions, ...) ? Again, yes, definitely ...
Above Chinese law ? Yes
Above $dictatorship's laws ? Yes
Above muslim countries' laws ? Yes
(the list goes on)
I would absolutely HATE to see US companies (any one of them) forced to comply to even a single one of these laws, except where it concerns people on the ground in those countries. But their websites and their business itself should be immune.
So let's focus on the point he *did* make ... is corruption illegal in the US ? Of course it is.
So the "tsa" post is full of bullshit. It is of course not legal in the US for politicians to be corrupt.
Nothing to see here. Move along.
The probe was prompted by complaints from several rivals including Foundem, eJustice, and Microsoft-owned Ciao, which claimed that Google had unfairly manipulated search results by lowering the rankings of competing services and elevating its own offerings in unpaid results.
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.
PAre your referring to the 2007 action? If so, a few months ago the EU cut one of the major European company's fine by 33%.
I'm a consultant - I convert gibberish into cash-flow.
What Greece and Itily do is NOT European politics. But I don't blame you for not knowing how European politics works; even Europe's politicians seem to not know how it works. And we're in this big political crisis in which European politics is in the process of being reformed too. These are difficult times.
I guess Austria, Britain, France also do not constitute European politics either? It would seem that the EU is no more free of corruption and business influence than the US.
Corruption is a universal problem wherever there is money to be made. I would venture to say the US and the EU probably do more to plush it than many countries but neither are pure and virginal either.
I'm a consultant - I convert gibberish into cash-flow.
Good article here:
I read the article on the tube, so wasn’t immediately able to check the website in question, but normally when firms blame Google for their problems it is related entirely to their web strategy (or lack of it), as opposed to some outlandish flaw with Google's algorithm. As such I reckoned there would be a problem with the Foundem website, and probably relating to unique content, technology, and a lack of quality links.
It turns out that there are problems in all of these areas...
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.
OMFG!!! Those bastards!! They are using legitimate business practises to compete fairly, and they are winning over European companies that offer an inferior service!!
From the article "Foundem vs Google: a case study in SEO fail"
I read the article on the tube, so wasn’t immediately able to check the website in question, but normally when firms blame Google for their problems it is related entirely to their web strategy (or lack of it), as opposed to some outlandish flaw with Google's algorithm. As such I reckoned there would be a problem with the Foundem website, and probably relating to unique content, technology, and a lack of quality links.
It turns out that there are problems in all of these areas...
http://econsultancy.com/us/blog/4456-foundem-vs-google-a-case-study-in-seo-fail
In any case, this clearly just another Microsoft scam. From the article:
The probe was prompted by complaints from several rivals including Foundem, eJustice, and Microsoft-owned Ciao, which claimed that Google had unfairly manipulated search results by lowering the rankings of competing services and elevating its own offerings in unpaid results.
Typical, MS using "Tonya Harding" tactics to break the knee-caps of MS competitors.
Anyway, why should Google have to promote Google competitors? NBC does not have to promote CBS.
Seems to me that Google has simply beat the competition, Google should be rewarded, not punished. But, I guess that would be capitalism, and not socialism.
Stop defending such a stupid statement.
When you do not obey another country's laws, why should they allow you to do business there?
The fact is, US companies want to do business abroad, and this means they've implicitly agreed to following the laws of the countries they're doing business in.
Unless you're a major shareholder of any company, you can cry all you want about having to follow whatever unjust laws you perceive, but the reality is that shareholders want money instead of the ideological zealotry that you're so fond of.
Don't quote me on this.
That word does not mean what you think it does. Money laundering: the process of disguising illegal sources of money so that it looks like it came from legal sources.
What Google, and Facebook, and Microsoft, etc. do is called tax avoidance, and (like it or not) it is completely legal.
Technically speaking, it would seem to be European politics. It is politics, and it is in Europe. The corruption issues may be limited to the national level, so it wouldn't be corruption at the EU level. That said, I'm sure that corruption is quite prevalent at the EU level as well. As I've already said, pretending that it isn't makes you the blind one.
This is my signature. There are many like it, but this one is mine.
But then again, European politics haven't come up with atrocities like software patents, SOPA and the DMCA either. In other words, I have proof for my claim and you don't have proof for yours. I think the institution of laws like the DMCA and SOPA (which hopefully doesn't happen), which have absolutely nothing to do with liberty and frredom for all but big corporations, is a sign of a level of corruption that even the Nigerian 'government' (which is basically Shell) can only look at in envy.
-- Cheers!
yeah this is just ransom money eu takes from every successful non-eu company to allow them to do business there. ever hear of any european company being fined??
Wealth is the gift that keeps on giving.
No, the US isn't. However, the US isn't facing a lack of lenders (like Greece & Co are), nor does the US make a habit of singling out successful foreign businesses to charge massive bullshit fines. Though, the real problem is corporate greed - if companies stood up en mass and told places like the EU to go fuck themselves and pulled out, the citizens of those countries would force through a governmental change real quick when they had to start living without things like video games, Android / iOS / Blackberry smartphones, software compatibility with the rest of the world, etc. And yes, I'd support companies from other countries doing the same to the US if the US government didn't want to play nice.
"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." ~Thomas Jefferson
look around you. its not the us anymore that's in trouble now. its the eu. the us has mostly recovered, because they have people willing to work, not just find new ways to fine smart people.
Wealth is the gift that keeps on giving.
So you're saying having an opinion contrary to the officially mandated opinion is banned? Didn't the aforementioned Hitler have such a policy? Just saying...
"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." ~Thomas Jefferson
It's worth remembering that a major component of how the DMCA came to be was saying that the US had to comply with WIPO provisions. Also, a major justification for the CTEA was also to 'harmonize' with European law, and said attempt at 'harmonization' was a large component for why the majority of SCOTUS erred in not striking down the retroactive extensions. Also, for most of the 20th century, US copyright law was much weaker than European law, and there are still some areas where it is more permissive. The solving lining of that godawful CTEA was the Fairness in Music Licensing Act, which allowed small restaurants to play radio stations under certain conditions without paying money to performing rights societies. The European Communities complained that it wasn't in line with the Berne Convention, and we had to pay them a few million to shut up, despite the fact that the radio stations that broadcast the music ALREADY pay those thugs money.
Anyway, getting into a national pissing contest is pointless. Even if you think the EU and your national government are several orders of magnitude more corrupt than the US, your government is still very corrupt and you should be pissed off about it instead of bragging about how your government doesn't screw you as hard as mine does. Personally, I'm quite sure I hate my government more than you hate my government.
This is my signature. There are many like it, but this one is mine.
You're right, let's stop. It was fun while it lasted but it gets no-one anywhere. But I don't know if you hate your government more than I hate mine, the Dutch government ;). I guess it's normal to find your government one of the worst in the world. Anyway, Europe and America are still two of the best places to live in on this planet, so we don't have it really bad.
-- Cheers!
I tried Googling it and all I got was :
Your search - Europe - did not match any documents.
Suggestions:
Make sure all words are spelled correctly.
Try different keywords.
Try more general keywords.
Try fewer keywords.
I will not be pushed, filed, stamped, indexed, briefed, debriefed or numbered. My life is my own.
look around you. its not the us anymore that's in trouble now. its the eu. the us has mostly recovered, because they have people willing to work, not just find new ways to fine smart people.
If by mostly recovered you mean the fact that no one is talking about the US, then sure, you're as recovered as most of the EU was a while back; slight growth with hopes for better. Last I heard there were talks of the US maybe losing it's triple A status as it was going nowhere fast with balancing the budget.
Stop it... Stop it...
You're a non-elected "government" full of overpaid ex- and failed politicians, and you're still trying to scam more money while Europe burns. Stop with the heavy intervention, you make me sick! Hopefully this EU thing is not going to last - Europe doesn't need dictators.
What about Vatican?
The saddest poem
I can recall people calling the Internet the tele{something} bubble of the 90s
-memory doesn't serve well since I was quite young back then-
social is an aspect of the human condition therefore it's digitized and networked
counterpart will always be an aspect of the Internet whether it will be centralized
or not. Facebook is not a bubble because it isn't inflated right now. its assets and
production aren't publicly traded, money tanks cannot (proportionately) moderate
it's perceived value.
-- no sig today
GP's point is that Google will have to stop its use of those convenient tax policies if it were to abandon Europe as a market.
Microsoft was actually repeatedly fined by EU for non-compliance with the ruling on the whole browser affair, for a total of something around 2 billion euro. The end result of this case is the browser selection screen that every user sees when they log in for the first time (provided that they are in EU).
No, but there's a range of opinions that is banned. Starting with anything that you can identify as "nazism" (which is *a lot*. Anything to the left of stalin has been forced to at least retract a few statements, Police regularly break up parties (yes, youth parties*) because of these laws, hell's angels groups are harassed, ...), several political parties destroyed and broken up, ...
In theory you have free speech. In practice it is the case that a certain segment of lefties have taken to calling everything that doesn't sufficiently agree with them nazist (like, for instance, social democrat parties who felt that men and women should have equal unemployment benefits, I believe the issue was that "sole fathers" would get increased benefits just like sole mothers do, and apparently that's not very socialist).
This has led to sometimes funny situations, like the dutch socialists in Belgium calling the french socialists nazis, *and* vice-versa. It stopped being fun when they involved the justice department though. The french ones won, but it is whispered that may have had something to do with the trial being overseen by a french judge. Keep in mind that the french socialists have been in power in > 60% of the french-speaking part of the country for decades, and thus have had veto rights over judge appointments. If you ever have a rent dispute in belgium and you're a tenant, request a trial in French, you'll be amazed what they let you get away with.
* there's several "neo-nazi" organizations who organize a lot of parties (which really only think that name is somehow cool, they certainly don't follow that ideology. They're very socialist, but much more focused on young people than the mainstream socialists. They're more about scholarships and unemployment and care very little about pensions, for example. They hardly ever campaign outside of discos and the like)
In recent years, further crackdowns have been ordered against anything considered culturally insensitive. Btw : this is not people acting like total buffoons because they perceive something to be racist, this is people ending up in jail because someone managed to build a case that they were insensitive. As an example was a hairdressing salon refusing to hire a veiled muslim woman (3 guesses why they did that, right ? Hair is their business, they don't want to hide it. They made the *big* mistake of telling that woman why they didn't hire her).
I do not suggest that European law is similar to chinese laws or islamic barbarism. But it's also very unlike American law, and has no direct right to free speech like Americans do.
Google does not actually have physical business presence anywhere outside of the US (in fact I believe they don't even have that outside of California). They have wholly owned subsidiaries, some of which are physically located inside the EU. Technically those subsidiaries are resellers.
So google's methods of making profit are governed by the laws of the state of California, while google's profits are distributed according to the laws of the British territory of the Bermudas. Read all about it
And that my friend, is a perfect argument for why the citizens of Europe should have fought to the death before giving up their rights to defend themselves. Once the people can't fight back against the government, they can do anything they damn well please with impunity. Sadly Europe has seen this before (especially with Nazi Germany), yet they don't seem to have learned this lesson.
"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." ~Thomas Jefferson
I'm pretty sure they also got the facts wrong about MS. While they may have settled the 2009 Internet Explorer case by adding the browser choice, they weren't so lucky with the 2003/2004 Windows Media Player/Networking case, where the EU fined them:
€497m (in 2004, original fine)
+ €280m (in 2006, calculated as €1.5m per day for non-compliance)
+ €899m (in 2008, for non-compliance)
= €1,676m total. Slightly more than simply adding a browser choice thing. And that doesn't include the 80% of the Commission's legal costs (or MS's own legal costs).
Oh, and MS are still appealing the 2008 ruling - but as they've finally complied with the 2004 one (possibly aside from paying the fine) the numbers shouldn't be going up much any more.
Most of the details, including links to the actual CJ rulings, can be found on the relevant Wikipedia page.
except where it concerns people on the ground in those countries
You do realise that Google has offices in the EU, don't you?
It's official. Most of you are morons.