EC accuses Google of distorting internet search results

The European Commission accused Google on Wedneday of cheating competitors by distorting internet search results in favour of its Google Shopping service.

The Commission has sent a Statement of Objections to Google on its comparison shopping service and has opened a separate formal investigation into Android.

The EU said in a statement after a news conference, "Today's statement of objections on comparison shopping is of course limited. But it is also the first place where we got a complaint that Google is favouring its product in search for the longest period in time.

"However, we will continue to look at Google's conduct in other areas ... If an infringement is proven, a case focusing on comparison shopping could potentially establish a broader precedent for enforcing EU competition rules in other instances of Google favouring its own services over competitive services.

"Just to be absolutely clear. We do not wish to interfere with screen design, with design choices (...) or how the algorithm works. Rather, what we would like to see, is that consumers are certain to see the best comparison shopping results.

"Our investigation so far has shown that when a consumer opens a shopping related query in Google's search engine, Google's comparison shopping product is systematically displayed prominently at the top of its results. This display is irrespective of whether it is the most relevant to the query."

On the first count, the Commission said it had sent a formal ''Statement of Objections'' to Google, charging it with ''systematically favouring its own comparison shopping product in its general search results pages.''

''The Commission's preliminary view is that such conduct infringes EU anti-trust rules because it stifles competition and harms consumers,'' a statement said.

If found at fault under EU anti-trust rules, a company faced a fine of up to 10 per cent of its annual sales - in Google's case,  $66 billion in 2014.

The commission added it would continue to look at three other areas of concern, copying of rivals' web content, exclusive advertising regimes and undue restrictions on advertisers - identified in probes dating back to 2010.

In another development that could be potentially huge, it also announced a separate investigation into Google's conduct as regards the mobile operating system Android.

''The investigation will focus on whether Google has entered into anti-competitive agreements or abused a possible dominant position in the field of operating systems, applications and services for smart mobile devices,'' the statement said.