EU Antitrust Chief: Google "Diverting Traffic" & Will Be Forced To Change

Dupple writes "It looks like the EU is coming close to a decision regarding its investigation of Google. While saying he's 'still investigating,' the head of the European Union's antitrust regulatory body has said that he's convinced Google is 'diverting traffic' and that it will be forced to change its results. From the article: 'Despite the U.S. Federal Trade Commission's move earlier this month to let off Google with a slap on the wrist -- albeit, a change to its business practices, a move that financially wouldn't dent Google in the short term but something any company would seek to avoid -- the European Commission is looking to take a somewhat different approach: take its time, and then hit the company hard.'"

Comments

nonsensical allegations

[Anonymous Coward]

What the hell do they mean by "diverting traffic", and why would it not be allowed?

What, exactly, does Google have a monopoly of, and how are they abusing monopoly power in any way?

TFA suggests they have a monopoly on "search" which is nonsensical, since there are many competitors and no barrier to entry, and they give the "product" away for free, so it would hard to claim any monopoly pricing power is even being used or existing.

A more sensible allegation would be that they have some kind of monopoly on advertising or user data collection, since that at least they charge for, except, that as far as I can tell, they don't have that either.

So, all in all, it looks like either a blatant cash grab by the EU, or a bullshit legal attack funded by the likes of Microsoft.

Re:nonsensical allegations

[aaron552]

IIRC, the problem is that Google's own services appear to be favoured in search rankings over competitors. I would think that this is primarily be because they're significantly more popular than the competitors, though, and not due to any bias on the part of Google.

A search for "email" on Google returns Hotmail as the first result and "web browser" gives an ad for IE, the wikipedia page for "web browser", Opera, and Firefox before Chrome appears. There doesn't seem to be anything particularly shady on there based on my rather unscientific test.

Re:nonsensical allegations

[FireFury03]

So the lesson here is that if you build a business, develop something that's really awesome and becomes the go-to choice for nearly everyone on the planet, your reward is to be considered a monopoly and regulated as a utility?

Your reward is that you have a business that is worth billions. There is a very minor penalty that you have to adhere to slightly stricter regulations as a result. Its good for the consumer for the dominant company to have to work at staying dominant rather than sit back and stagnate since no one can compete.

There are always penalties associated with being successful, but the success generally outweighs the penalties. Or are you going to complain that successful high-profit companies shouldn't have to pay more tax than low-profit businesses because that would be a penalty on their success?