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Google Businesses EU

EU To Hit Google With Antitrust Charges 247

Bruce66423 sends news that the European Union has decided to hit Google with antitrust charges that could lead to fines of over $6 billion. The EU has been investigating Google for five years now. "The European Commission has highlighted four main areas of concern in its investigation: potential bias in Google’s search results, scraping content from rival websites, agreements with advertisers that may exclude rival search-advertising services and contracts that limit marketers from using other platforms." They're also keeping an eye on Android-related business practices.
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EU To Hit Google With Antitrust Charges

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  • by Crashmarik ( 635988 ) on Wednesday April 15, 2015 @12:25AM (#49476053)

    Pretty much captures it. You can also go, with Politicians: They don't care why they'll take your shit anyway, Or "Google didn't bribe enough people in the EU"

    • by TuringTest ( 533084 ) on Wednesday April 15, 2015 @05:13AM (#49476865) Journal

      In Europe we already tried allowing a winner-takes-it-all strategy where a very good leader keeps the monopoly over a (market/region/population), it was called an absolute monarchy.

      It looks good for as long as the original manager (who reached the position as the best in a meritocracy) stays in place. It lasts for a generation, when the competent leader legates the role to their heirs, who may or may not be prepared to maintain the same level of quality service.

      By that time, it is too late to displace the incompetent newcomers - all the network effects that entrenched the original leader as a monopoly are still in place and are too strong to overcome even when there are better alternatives, except by a disruptive process that redefines the rules of the game in full. I heard you Americans didn't like absolute monarchies? You should then understand the EU's position.

      • In Europe we already tried allowing a winner-takes-it-all strategy where a very good leader keeps the monopoly over a (market/region/population), it was called an absolute monarchy.

        Google is not winner take all, nor is it a monopoly. I can't comment on it being monarchy. I suspect you are in no position to do so either. If you want a "European Tradition" that's in play here I would go with either the Mafia or just the general shakedown.

      • Step 1: Offer a compelling product.

        Step 2: Offer it in a cheaper *and* more open way that the competition.

        Step 3: Repeat step 2 over and over while network effects kick in. As trust and network effects continue to escalate, you become the "default choice".

        Step 4: Only go here when you want to be evil. Stop offering such a good price. Don't be as open as you used to be. Structure your prices around keeping competition out rather than simply being "better". Hire lobbyists and start offering regulatory officia

  • For all of the problems they listed, isn't Apple far bigger and far worse with said problems? Why do I need Apple hardware to merely develop iOS?

    Isn't Android something of a problem? At least I can change search engines no-cost, who cares if they show a map with their search results (that's kind of what I'd want if I'm searching for a location or business, isn't it?). But Android has become progressively more closed-source, Google-specific, and if I want to adopt a different app store, that's going to cost

    • Re: (Score:3, Informative)

      For all of the problems they listed, isn't Apple far bigger and far worse with said problems? Why do I need Apple hardware to merely develop iOS?

      I assume it's because Apple isn't in a monopoly or market-dominant position.

      • Re:Singled out? (Score:5, Insightful)

        by diamondmagic ( 877411 ) on Wednesday April 15, 2015 @01:28AM (#49476225) Homepage

        You wouldn't say Apple has as strong or a stronger hold on the music and mobile phone markets? There's plenty of adequate competition for search engines.

        If nobody else even knows about alternative search engines, you can't really hold Google liable for that, can you?

        • You wouldn't say Apple has as strong or a stronger hold on the music and mobile phone markets?

          On mobile phone markets, definitely not - last I checked Android was dominant there.

          I can't say about the digital music market - if I had to guess, Apple is probably #1 there with iTunes, but not to the extent where they can control it.

          There's plenty of adequate competition for search engines. If nobody else even knows about alternative search engines, you can't really hold Google liable for that, can you?

          You can if they are shown to have abused their dominance position, e.g. by using tie-in to promote their other products, or by excluding their competitors. It doesn't really matter how they've gotten into that position in the first place, the damage is the same.

          • You can if they are shown to have abused their dominance position, e.g. by using tie-in to promote their other products,

            It's not illegal to use successful products to promote other products. otherwise we'd have already done Microsoft for antitrust again. That's half their business model, literally.

            or by excluding their competitors.

            Yeah, Google doesn't do that either. You can use google to find other search engines.

        • So Google should get off scot free with breaking the law because "Apple do it too"?

    • by Dog-Cow ( 21281 )

      You don't need Apple hardware to develop for iOS. It happens that Apple won't support any of the tools which enable such development, but then, why should they? You realise that MS doesn't support developing Windows applications on non-Windows OSs too, right? Same goes for Windows Phone.

    • by jbolden ( 176878 )

      The problems they are listing are violations of anti-trust not your annoyances with how you have to develop. Apple isn't a monopoly. The costs associated with the lockin (even if one wanted to grant that) for iOS development are trivial.

    • by dave420 ( 699308 )
      You could wait and see - they can work on more than one case at a time, so something might be in the works. To assume everything we know now is all that is happening is rather silly.
  • by Nutria ( 679911 ) on Wednesday April 15, 2015 @01:45AM (#49476279)

    As soon as I read the headline, I hoped that Google would beat the EU. It took effort to remember the Microsoft anti-trust case of 25 years ago, and how -- for many of the same issues -- I wanted the DOJ to grind MS into the dust.

    • by pijokela ( 462279 ) on Wednesday April 15, 2015 @02:16AM (#49476361)

      Exactly! Looks like we need to have all the antitrust discussions again - how it's ok to have a monopoly but not ok to use that to grab market share on other markets, how monopoly power does not mean 100% market share etc. Too many are too young to remember from the MS antitrust days or maybe they have forgotten all that.

      And if you think that it's wrong of EU to investigate an American company, think about it this way: with EU and US doing these investigations, we can have more faith in that all monopoly abusing companies will be investigated somewhere - even if their home country is turning a blind eye. This is good on both sides - it's not like this will really have a huge effect on Google anyway.

      • by TubeSteak ( 669689 ) on Wednesday April 15, 2015 @04:33AM (#49476749) Journal

        And if you think that it's wrong of EU to investigate an American company, think about it this way:

        Google is a European company.
        Actually, many European companies.
        http://www.google.com/about/company/facts/locations/ [google.com]

        Google's European headquarter is in Ireland... well, actually, it's an Irish company that is headquartered in Bermuda.
        Google USA licenses its IP to Google Ireland Holdings (headquartered in Bermuda).
        In turn, Google Ireland Holdings sub-licenses the IP to its wholly owned subsidiary in the Netherlands: Google Netherlands Holdings B.V.
        Then Google Netherlands Holdings B.V. sub-sub-licenses the IP to another Google Ireland Holdings subsidiary: Google Ireland Ltd.

        To coordinate all this, Google has a network of corporations in individual EU States, usually just "sales support" staff who run the ad-sales and ad-placements.

        TLDR: The EU can't break up Google USA, but they can force Google Ireland Holdings to GTFO or change the way it offers services in the EU.

        • TLDR: The EU can't break up Google USA, but they can force Google Ireland Holdings to GTFO or change the way it offers services in the EU.

          But aren't they just holding companies for the IP (as you explained) and the actual services are provided by a completly different entity? Your search request may run on servers not owned by Google Ireland or Google Netherlands.

        • Google is not a European company. Google has subsidiary companies that are registered in many countries, but they are mostly just sales offices. From your link: "We moved into our headquarters in Mountain View, California—better known as the Googleplex—in 2004.". Most international companies have subsidiaries where necessary -- either for tax purposes, or because the local governments require it.

          Same thing for McDonalds, IBM, or any other multinational company.

          Personally, I'd like to see Goog

    • by Linnsey Miller ( 2993021 ) on Wednesday April 15, 2015 @02:44AM (#49476443)
      You couldn't buy a computer (and still can't) without Windows. You couldn't uninstall IE. Windows was actively preventing users from using competitor's products, and it was costly and time consuming to do so. Google is in trouble for not sufficiently advertising competing products. There's no barrier for entry to use bing instead of Google, or amazon instead of google shopping.
      • Re: (Score:2, Flamebait)

        What Google should be investigated for is linking their search service to their failed social media service - in order for Google to establish canonical authorship on content, you have to link the page to a Google+ account, no other well known public profile (Twitter, Facebook etc) will do, you have to have an account on Google+.

        That's something worth looking hard at.

      • You couldn't buy a computer (and still can't) without Windows.

        But with a computer you could always buy the parts and build your own. Slashdot will regularly feature posts from companies selling non-Windows computers. Just because IE is installed doesn't force you to use it.

    • by linearZ ( 710002 ) on Wednesday April 15, 2015 @03:00AM (#49476491)

      Perhaps the reason you feel different is that Google isn't forcing people to use Google. This is a little bit different than Internet Exploder, which MS was forcing people to keep installed when using the OS. But one could just as easily type www.yahoo.com into the URL, or even www.bing.com into the URL. Heck those are easier, less characters. Perhaps people don't want to do this because Google is a better search engine?

      Google isn't a Monopoly by any means. At the time of its Anti-Trust case, Microsoft was effectively a monopoly on all PCs, and was acting like a monopolist dickwad. Microsoft well deserved the Anti-Trust treatment. The unfortunate fallout from the Microsoft cases were that governments got the bright idea to bring Anti-Trust lawsuits any tech market leader. Google just happens to be in line this week.

      • This. You guys should look for a job at the EU commission.
      • by AmiMoJo ( 196126 ) *

        Google isn't a Monopoly by any means. At the time of its Anti-Trust case, Microsoft was effectively a monopoly on all PCs,

        Actually, if you look at the EU anti-trust case against Microsoft you can see that it wasn't the fact that Windows was installed on 99% of PCs that they objected to. It was the fact that they used that position to then lock others out of other markets, such as media players and web browsers. The fix was to require the creation of Windows N, which is just Windows without Microsoft's media player pre-installed (thanks EU for cutting out some bloatware), and to implement the browser choice window.

        Google is now

        • Google is now in the same position, where they use their dominant position in search to push users to their other products like YouTube, Gmail, G+ etc. If you create a Google account so that you can customize your search settings you automatically get a Gmail account, a YouTube account, a G+ account and basically everything else they offer.

          Yep. Got all those things when I created a google account. Don't use any of them. And they've never tried to force me to use them, nor forbidden me from using somethin

      • by hjf ( 703092 )

        You can enter www.yahoo.com any time and use yahoo instead of google. For a while now. Since Yahoo Search used to be powered by Google.
        But anyway. You could also download and install ANY OTHER BROWSER, even using IE. Microsoft DID NOT force you to use IE to browse the web.
        And Google is in a dominant position, and, while it doesn't force anyone to use their products or services, they showcase them in a very special way. Go to www.google.com. Do you see any ads? YES, ONE: An ad for CHROME, which, guess what?

      • This is a little bit different than Internet Exploder, which MS was forcing people to keep installed when using the OS. But one could just as easily type www.yahoo.com into the URL, or even www.bing.com into the URL.

        But could just as easily launch Netscape from their desktop as they could IE from their desktop.

      • by dave420 ( 699308 )
        You don't seem to understand what this is about. If Google hurts a business's page rank because of some business practice, the general public who resoundingly do use Google will not find said business as quickly (or at all), meaning Google can skew an entire market if it wanted to, as long as it did it quietly enough to not scare people off from using Google.
  • Even the highest fines anyone's given out so far are still marginal enough to be considered the cost of doing business for the penalized corporation.

  • by John.Banister ( 1291556 ) * on Wednesday April 15, 2015 @02:07AM (#49476337) Homepage
    and the only advertisement was for adwords. Then, I searched for 'adwords competitors' and found competitors to adwords among the search results, but still no advertisements from competitors to adwords. This seems like the sort of thing they're complaining about. But, while I use Google search as if it were a utility, I don't think search is considered to be a public utility at this time. When I think about an analogy other than common carrier requirements, what comes to mind is requiring the Parcelforce logo and phone number be painted onto a corner of DHL vehicles so that people might consider the alternative service.
    • or, it could be that none of those "adword competitors" bothers to pay for marketing via Google? That makes more sense than some vast conspiracy that Google had to know might get them in trouble...
  • Google does have an effective monopoly in search, and it's not a bad idea to have some degree of regulation in place to make sure that it doesn't harm consumers. (Though nonsense like a 'right to be forgotten' is going too far, and should be dropped)

    The problem is that that very well may not be the EU's only motive here. At about the same time that the charges were announced, Gunther Oettinger, the EU's Digital Commissioner gave a speech where he said:

    A great challenge is also Europe's position in the devel

    • They're at 65% market share, with Bing at 20% and Yahoo not far behind. That's not a monopoly.
    • All one has to do to use another search engine is google "search engine".

      Google doesn't even return Google when you google "search engine". It does return half a dozen other search engines, including Bing, DuckDuckGo, and Yahoo. A market leader perhaps, but not a monopoly.

    • Good post. When I read the summary, I thought it would have been snarky but somewhat truthful to revise the summary to reflect the true situation:

      The European Commission has highlighted five main areas of concern in its investigation: potential bias in Google’s search results, scraping content from rival websites, agreements with advertisers that may exclude rival search-advertising services, being a US company, and contracts that limit marketers from using other platforms."

      The EU selectively targets these large fines only at non-EU based companies, which I don't think is coincidence. I agree it was smart to investigate, but they haven't really produced much in terms of evidence to substantiate a $6bn fine. This isn't nearly as egregious as what MS pulled in the past, but its being treated as such.

    • by dave420 ( 699308 )
      You are just guessing, it seems. There is no evidence to suggest these different organisations are all in cahoots to overturn Google. Plus, them having a monopoly doesn't matter - it's about abusing their position in the market. They just have to be sufficiently large to abuse that position, way before becoming a monopoly.
  • I really love the speed of the EU. Tomorrow they will fine Jesus after a complaint of Zeus about a non-competitive religion...
  • by Trevelyan ( 535381 ) on Wednesday April 15, 2015 @07:37AM (#49477265)
    It's been said before, but bares repeating: If you're using Google's "services" for free, then you are the product and not the consumer/customer.

    Such an antitrust case is about protecting Google's consumers/customers from Google's de-facto monopoly in the market.

    You (the product) switching from google to another search provider only means that Google has 0.00000001% less product to sell, and is unlikely to impact anyone.

    However a business (the customer) switching to another provider, could (and would) cut that business off from over 90% of its potential customers (you). Something that is likely to impact them greatly (if not kill the business).
    • by AmiMoJo ( 196126 ) *

      It's been said before, but bares repeating: If you're using Google's "services" for free, then you are the product and not the consumer/customer.

      it was wrong then and it's still wrong now. Such a simplistic definition doesn't properly describe the situation. Clearly you are Google's customer, because they require your custom in order to sell advertising. You are both customer and product.

    • by dave420 ( 699308 )
      Christ not that old nonsense again. You are the customer, even if money doesn't change hands.
  • by JabrTheHut ( 640719 ) on Wednesday April 15, 2015 @10:17AM (#49478051)

    I have found Google is now setting up Google Plus accounts for local businesses. Without their knowledge or permission. If you're a small business you had better start filling in your G+ profile, because it looks bad if the contact details are wrong or incomplete. If you have a website is irrelevant - the G+ profile appears first.

    Has Google decided to create a G+ account for me?

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