EU Antitrust Probe Threatens To Hit Google With Heavy Fines

Google faces an antitrust case as the European Commission has told the Internet search company that it can expect hefty fines being levied as part of the probe on the matter, reports claim.

Google has been battling controversy as antitrust authorities in the EU threaten to impose fines on the company's operations in the region if it does not start giving rivals more prominence in its search results.

According to a Bloomberg report, the EU "intends to set the fine at a level which will be sufficient to ensure deterrence."

"The EU's competition watchdog told Google it could face a fine based on its AdWords revenue stemming from European users, according to a version of the statement of objections released to complainants and seen by Bloomberg. The EU also said it may tell Google to make changes to how its shopping services are displayed," reported the publication.

The move is the latest step by officials in the EU as part of the five-year antitrust case against Google. Earlier in April, a statement of objections outlining the intended move was reportedly sent to Google.

The European Commission reportedly sent on June 18 a redacted variant of the charge sheet to over six aggrieved parties who were unhappy with Google meting out discriminatory behavior against them in the context of ranking in shopping searches.

The document is reportedly 120 pages long and will be sent to close to 20 organizations and companies in the near term. These companies include Yelp, Microsoft and BEUC. These companies have alleged that Google is misusing its position and favors its own services over that of rivals.

The statement of objections also details the changes that EU regulators are demanding from Google, as well as the fine that can be levied. The figure, however, remains unknown. Moreover, the European Commission has also asked the aggrieved parties to sign non-disclosure agreements so that the document cannot be shared publicly. Additionally, the copies have been watermarked with the complaining party's name to avoid leaks.

Google for its part has asked the European Commission for time to prepare its defenses, as well as respond to the allegations, according to people with knowledge. It is believed that Google's deadline originally was July 7 and it was charged by the Commission on April 15.

Photo: Robert Scoble | Flickr

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