Google offers to settle with investigators looking into claims it unfairly stifles opponents

 

The internet search giant Google faces having to make changes to the way it runs some of the most lucrative parts of its multi-billion pound business after it made an offer to settle with European Commission investigators looking into claims it uses its muscle to stifle opponents unfairly.

The firm is seeking to avoid a formal probe into allegations its search engine favours its own products over those of its competitors. But its offer of a settlement could open the door for investigators looking into similar complaints in some of the world's biggest markets - including the United States, India and South Korea - to demand the same concessions.

Google confirmed it made an offer, sent to the European Commission (EC) by its executive chairman Eric Schmidt. If the EC accepts the deal, the antitrust probe will be dropped.

While Google will have to satisfy the EC that it will not hold an unfair advantage over competitors in order to have the case dropped, doing so would see the firm would avoid a fine of up to 10 per cent of its global earnings, which totalled £24.1b illion last year. It will also fend off any moves to impose more stringent restrictions on its European operation.

The firm has agreed to make concessions on how it runs it search, advertising operations. European competition commissioner, Joaquin Almunia wanted to look at claims that Google promotes its own products, such as YouTube and Google Maps ahead of similar services offered by its competitors in search results.

He also wanted to investigate allegations the firm copies competitors? material such as restaurant guides in its search results, as well as two separate concerns over how it runs its advertising business. Google, which reportedly has around 95 per cent of European online search traffic, was told to respond in May or face a formal investigation.

A Google spokesman refused to reveal the details of the firm's offer but confirmed the deal included settlements on all "four areas the European Commission described as potential concerns". The spokesman said: "We continue to work cooperatively with the Commission."

Independent Comment
blog comments powered by Disqus
News in pictures
World news in pictures
       
 
iJobs Job Widget
iJobs Money & Business

Trusts Manager - Gloucestershire

Excellent Salary: Austen Lloyd: We have a very exciting opportunity with a maj...

FX Options Front Office Java / C# Developer

£500 - £600 per day: Orgtel: FX Options Front Office Java / C# Developer - Ba...

Project Manager - Front Office - Regulatory IT

£600 - £700 per day: Orgtel: Project Manager - Front Office - Regulatory IT C...

FATCA Project Manager

£600 - £750 per day: Orgtel: FATCA Project Manager - Banking - London - £600-...

Day In a Page

Babies behind bars: A Palestinian fertility doctor has become an unlikely hero by helping women conceive – even though their husbands are in jail

Babies behind bars

A Palestinian fertility doctor has become an unlikely hero by helping women conceive – even though their husbands are in jail
Sonic youth: The high-pitched sound alarm for under 25s

Sonic youth: The high-pitched sound alarm

Is Mosquito, the alarm only under-25s can hear, a blessing or a bane?
The art of living in small spaces: Architects are learning how to make less, more

The art of living in small spaces

Space in cities at a premium so architects are learning how to make less, more...
Special report: The story of Sir Mervyn King's reign at the Bank

The story of Sir Mervyn King's reign at the Bank

After four 'nice' years as Governor of Bank of England, things turned decisively nasty
Zombie nation: Our enduring fascination with a world full of death and destruction

Zombie nation: Our fascination with death and destruction

A new season of shows on Radio 4 is inspired by dark tales of future dystopias. Meanwhile, zombies are marauding in the multiplexes...
Martin Stephen: 'Ofsted says comprehensives are failing the most able but teaching bright children isn't rocket science'

'Teaching bright children isn't rocket science'

It doesn't take a selective system to nurture the best minds, says a former head of St Paul's boys' school.
The retail empires strike back: Can new technology lure us back to the high street?

Can technology lure us back to the high street?

The high street has been bruised and battered by online firms but in-store technology is helping to enliven the retail experience...
The 10 Best new smartphones

The 10 Best new smartphones

Photos, films, music, apps and browsing - the latest mobiles can do it all
Jenson Button: Downbeat driver cannot wait to put season behind him

Jenson Button: Downbeat driver cannot wait to put season behind him

McLaren man admits 'failed gamble' with car has left him pinning hopes on 2014 campaign
James Lawton: Firmer fist will be required to win Champions Trophy final battle with stouter foe

James Lawton

Firmer fist will be required to win Champions Trophy final battle with stouter foe
'To farm I have to rape the countryside. It’s got to be wrong': The true effect of the badger cull

The true effect of the badger cull

'To farm I have to rape the countryside. It’s got to be wrong'
Theatre review: Daniel Radcliffe gives an admirably honest performance in Michael Grandage's The Cripple of Inishmaan

First night: The Cripple of Inishmaan

Daniel Radcliffe gives an admirably honest performance in Michael Grandage's comedy
Girls Guides drop religious reference but pledge to self and the Queen

Guides drop religious reference but pledge to self and the Queen

After 103 years, organisation changes oath to welcome 'all girls, of all faiths, and none'
Steve Tongue: Joe Kinnear was one of the boys and a breath of fresh air... 21 years ago

Steve Tongue

Joe Kinnear was one of the boys and a breath of fresh air... 21 years ago
Chris Froome: Free from 'pain in neck' after Bradley Wiggins' exit

Chris Froome: Free from 'pain in neck' after Wiggins' exit

Sky's lead rider says he is in fantastic form for the Tour and happy pecking order debate is over