Google’s EC anti-trust fine could be bigger than Microsoft’s

24 Sep 2014

Google's anti-trust row with the EC could turn into a case bigger than the one that cost Microsoft over €2.2 billion, The Guardian reported quoting the outgoing competition commissioner Joaquín Almunia.

In a radical shift in position Almunia, the EC's competition commissioner, told the European parliament that unless the internet search company altered its offer to settle complaints, it could face a ''statement of objections'', the formal path towards a fine that could equate to 10-per cent of the company's global revenue, or about $6 billion.

Almunia told members of the European parliament that the company was investigated [by the EC] for 16 years.

His latest comments run counter to his earlier  position when he was poised to accept Google's third set of proposals to settle the long-running dispute, which he opened formally in November 2010. Among the complainants was Microsoft.

Google controls over 90 per cent of the online search market in Europe, which is much in excess than in the US where it was cleared by the US federal trade commission in January 2013 of favouring its own searches to the detriment of consumers.

According to Almunia this meant Google could end up a bigger case than Microsoft Corp, which had had to wage a decade-long battle with the EU watchdog and was hit with more than €2.2 billion in fines, Reuters said.

"We have received complaints on the possible diversion of internet traffic toward Google services which are not search services, so this is a possible third investigation concerning Google," Almunia told a European Parliament hearing.

According to Al Verney Google spokesman who spoke in advance, Microsoft continued to work with the European Commission to resolve their concerns."

Almunia, who is scheduled to leave office by the end of October, did not provide any further details and it remained unclear as to whether he would open a case or leave it to his successor Margrethe Vestager.