Google, the world's dominant search provider, is in a sensitive position right now and has to make some changes soon if it wants the European Union to ease off on competition cases. The European Union has been on Google's back since November 2010, when the European Commission started an investigation, following complaints that the search giant had used its position to abuse competitors and crush smaller companies.
The European Commission could fine Google up to 10 percent of global revenues (close to $40 billion last year), and impose changes to its operations. EU antitrust Competition Commissioner Joaquin Almunia has given Google until early July to figure out how it will change its practices to settle the investigation.
"I want to give the company the opportunity to offer remedy proposals that would avoid lengthy proceedings," said Almunia in a speech on Friday, June 8, as cited by ZDNet. "By early July, I expect to receive from Google concrete signs of their willingness to explore this route."
The 18-month investigation pointed out several issues and concerns regarding Google's business practices, including how the search giant may be favoring its own services over competition in certain areas, such as online price comparisons. If Google is not willing to alter its practices and convince the Commission that it is not abusing its power, it may face antitrust action and billions worth of fines.
The Competition Commissioner also said in his speech on Friday that if Google submits unsatisfactory proposals, the European Commission would take formal proceedings, issuing a formal "statement of objections" to escalate the issue.
As much as 80 percent of Web searches in Europe are run on Google, show the most recent data from comScore. According to Google's opponents, the search giant, which draws its profits by advertising sales, can make or break a business simply by its ranking, and is curbing the market in its favor to boost its ventures in specialized searches such as travel.
Three firms took the matter to the Commission in early 2010, filing a complaint against Google. The firms included British search firm Foundem, which offers a tool to find cheap household gadgets, and 1PlusV, the company running French legal search Web site Ejustice.fr.
Google has until July 2 to begin negotiations for settling the investigation. The company denies claims that it stands in violation of competitor protection regulations.
