Google managed to avoid a $5 billion fine by making concessions in how it displays competitors’ links in European search results. Joaquín Almunia, Europe’s competition commissioner announced on February 5th that Google made sufficient concessions to settle a three-year antitrust probe against the company and avoid a fine.
Google carries out 90% of searches coming out of Europe. Organizations like Fairsearch Europe, whose member companies include Microsoft, Nokia, and Oracle originally filed complaints with the European Commission (there are now a total of 18 complainants) against alleged anticompetitive practices by Google. Among other concessions, Google will now display competitors’ shopping results next to Google’s own shopping results in European searches. Google will auction those slots to the highest bidders.
The complainants are not satisfied with the settlement. In a press release by Thomas Vinje, Fairsearch Europe’s legal counsel, he admonishes the Commission for accepting Google’s proposal, claiming that it is “worse than doing nothing.” He argues that forcing companies to pay for link placement similar to that of Google’s own links undercuts the ability of rivals to compete. Rivals would be forced to “hand the vast majority of their profits to Google.” Although his statement does not directly speak to Fairsearch’s next move, individual complainants such as German online mapping service Euro-Cities indicated through a statement by its Chief Executive that they would “continue to take legal action about Google’s business practices in the German and, if necessary, EU courts.”
Judging by the reaction of its rivals, Google appears to have accomplished a major victory by settling with the European Commission. But this will almost certainly not be Google’s last antitrust battle on the European front.