Google Inc (GOOG): One Last Chance to Get This Right

Page 1 of 2

Google Inc (NASDAQ:GOOG) knows the European Union Competition Commissioner on a first-name basis by now. After all, when the man who oversees a nearly three-year investigation into anti-competitive business practice claims and has dealt with the company several times by letter or in-person meetings over those three years, chances are the interactions  can be casual after a while. (We have documented at least some of this process before.)

But when it comes to securing open competition, it is serious business for the EU Competition Commission and it takes its work very seriously. Google Inc (NASDAQ:GOOG) is still in the crosshairs of the commission even after submitted proposals Sergey Brinback in April that were designed to remedy the antitrust investigation into Google and its search engine, which has been claimed to punish any and all rival websites and services that are available online.

Google was asked to submit  proposed changes back in April, and the EU ran a series of field tests on the proposed search changes to check their effectiveness and balancing out the competition on Google Search results, which have been claimed to favor Google and partner sites and services first while pushing all competition further down the page of results – even if the rival results were actually more relevant to the search inquiry terms.

However, as a result of the field test, Competition Commissioner Joaquin Almunia revealed this week that he sent a letter to Google Inc (NASDAQ:GOOG) executive chairman Eric Schmidt advising him that the proposals sent forth were not adequately addressing the concerns of the EU Competition Commission nor of those who filed the original complaints, and that the company was now demanded to come up with better ideas or risk formal legal proceedings on the antitrust, anti-competition charges. There is no word as to what the new deadline will be for the new proposals.

“After the analysis of the results of the market test that concluded at the end of last month … I concluded that the proposals that Google sent to us months ago are not enough to overcome our concerns,” Almunia said. Google Inc (NASDAQ:GOOG) Search  has had a 90-percent market share in Europe for the past five years, according to regular data reports.

If Google breaks any commitments or fails to present adequate  remedies for the anti-competitive concerns, the company could face a fine of as much as 10 percent of its annual global revenue, which would translate to hundreds of millions of dollars.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

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!