Google Inc (GOOG): More Than a Fine At Stake in EU Antitrust Probe?

Page 1 of 2

Google Inc (NASDAQ:GOOG) makes gobs of money (that is an actual technical term for a lot of money – we looked it up) in its search engine, which dominates the world market – though it has competition in individual countries, like China’s Baidu.com , Inc. (ADR) (NASDAQ:BIDU) and Russia’s Yandex NV (NASDAQ:YNDX) – and has faced and paid its share of fines for various violations. No fine has really crippled this juggernaut, which continues to be at the top of the market in many segments in which it has a foothold.

Google Inc (GOOG)In the European Union, where Google Inc (NASDAQ:GOOG) has been a headache for three years with the European Commission in an antitrust investigation into its search-engine model,  patience is running thin and it seems fairly certain at this point that Google could be facing another fine, though this one may actually hurt because estimates say it could be into the 10-figure range (about $1 billion has been talked about). But could the EU impose another sanction that might be even more punitive, or one that is in addition to the fine?

EU Competition Commissioner Joaquin Almunia at least hinted at the possibility of such a move this week when he spoke in Madrid. As the antitrust probe into Google Inc (NASDAQ:GOOG) and its search engine winds down to a final decision and resolution, Almunia seemed to express some impatience with the process and frustration with Google’s attempts to rectify the issues that were brought up in the investigation. He said, “Depending on Google’s response and the market test I have to decide whether we reach an accord. Working with the hypothesis that it’s possible to reach a deal, it will probably be reached by the end of this year.”

Google Inc (NASDAQ:GOOG) had forwarded a list of proposed fixes to its search engine, which were supposed to address the concerns that Google  was rigging its algorithm solely to favor its own properties and those of partner websites above rivals and competitors, not basing the results on actual relevance to the search query. The recommended changes were submitted in April, and they have been market tested since, to mostly negative feedback, including that from Microsoft Corporation (NASDAQ:MSFT).

Google Inc (NASDAQ:GOOG) – and investors like fund manager Julian Robertson, whose portfolio includes $27 million in Google stock as of March – could be just waiting for the fine to come before making any serious efforts to change its model, but what if the EU does something additional or in lieu of a fine?

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!