Everyone saw it coming, so it's not a big surprise, but it's still a bit perplexing as it's not just about online search: The European Union is accusing U.S.-based search giant Google of antitrust regulations and is also investigating Google's Android mobile OS.
Wednesday's announcement, long in coming as the EU kicked off its review of Google's business moves five years ago, is a bit confusing given Google clearly moved to settle an EU inquiry just last year. However, the EU came back into the picture, based on reported complaints by Google competitors.
As 2014 came to a close, things weren't going well abroad for Google, as one report claimed the European Parliament was trying to break it up.
However, obviously, that wasn't going to happen and won't happen. The clear message, though, is that the EU doesn't trust Google. Then again, it doesn't seem to trust Microsoft or any other U.S. tech titan.
The thing is, investigating Google's search business and investigating its support of the Android mobile OS are two very different targets. The EU seems to have a very detailed investigation planned into whether Android is obstructing rivals, obstructing Android competitors and taking steps to stem rivals' apps and services.
"The Commission's determination to investigate this is important because Google Android has used its dominance to move from an open system to a closed one, so it can exclude competitors to the benefit of its own businesses," said Thomas Vinje, FairSearch Europe Legal Counsel, in a statement.
FairSearch is a lobbyist organization that is supported by big names, including Microsoft, Nokia and even Oracle.
Google, for its part, is proclaiming it's been following European law and proving to be a good, rather than evil, influence in the European mobile device market. Its VP of engineering for Android, Hiroshi Lockheimer, claims Google's moves into the European mobile OS marketplace has proven to be a boon for consumers as competition drives lower prices, more choices and even great innovation.
Those market contentions are echoed by senior VP of Google Search Amit Singhal.
"While Google may be the most used search engine, people can now find and access information in numerous different ways — and allegations of harm, for consumers and competitors, have proved to be wide of the mark," said Singhal.
However, those statements aren't proving soothing to EU antitrust commissioner Margrethe Vestager, who is described by industry watchers as a bit more aggressive in her role compared with predecessors.
"If the investigation confirmed our concerns, Google would have to face the legal consequences and change the way it does business in Europe," said Vestager.
The European Union is investigating whether Google is using its dominant market share in search and in smartphone operating systems to gain an unfair advantage over competitors.
In a nutshell the EU believes Google may be shifting traffic to favor its own comparison-shopping site, on its search engine portal.
If the EU succeeds in proving its allegations, it could end up costing Google 10 percent of its current annual revenue, which is not a minor fine by any means.
Whether it's any solace to Google, the EU isn't worried about it alone. It's also looking into tax program deals given to Apple in two different countries, and Facebook is on its radar regarding how the social network is truly protecting online data.
One thing that may help Google is that the U.S. Federal Trade Commission's investigation regarding antitrust ended without any formal determination that Google has done anything wrong.
Regarding the mobile OS investigation, the EU commissioner stated, "Smartphones, tablets and similar devices play an increasing role in many people's daily lives and I want to make sure the markets in this area can flourish without anticompetitive constraints imposed by any company."
