European parliament wants Google split

The European Parliament is in the process of preparing a non-binding resolution that proposes splitting Google Inc's search engine operations in Europe from the rest of its business as one possible option to rein in the internet company's dominance in the search market, Reuters reported.

There is increasing concern in Europe over the command of US companies over the internet industry, and politicians are seeking ways to curb their power. A public call for break up would pose a significant potential threat to Google's business according to commentators.

The draft does not mention Google or any specific search engine, though Google is the most dominant provider of such services in Europe with an estimated 90 per cent market share. Earlier yesterday, the Financial Times described a draft motion as calling for a break-up of Google.

The motion, according to Reuters, "calls on the Commission to consider proposals with the aim of unbundling search engines from other commercial services as one potential long-term solution" to levelling the competitive playing field.

While the European parliament had no power to initiate legislation and lacked the authority to break up corporations, the draft motion constitutes a non-binding resolution, which would serve to step up pressure on the European Commission to act against Google.

European concern about Google is linked to the fact that the company has a massive market share in Europe - about 90 per cent, as against around 68 per cent in the US. Some believe that it abused that dominance to downgrade the search results of its rivals, Business Insider India reported.

At the time of the launch of the antitrust investigation in 2010, the then VP of the European Commission Joaquin Almunia listed four main areas of concern that:

• Google gave links to its own "vertical search services," like Google Shopping, restaurant reviews, news, or YouTube, preference over rival links;
• Google took content from competing companies (like restaurant reviews from Yelp) and used it in its own services;
• The company shut out search advertising competitors on websites where it delivered search advertisements; and
• The search company also made it difficult for advertisers to move their advertising away from its own system, AdWords.