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The never-ending Google anti-trust story: the company could now face civil claims in Europe

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It seems Google’s legal woes in Europe will never end. The European Commission has long been running an investigation into whether Google was guilty of anti-competitive behaviour in Europe, which finally resulted in a filing of charges in April and a warning of large fines in June. It may be next year – some six years after the investigation began – before the final ruling.

A second anti-trust investigation into Android followed, and a third one not long afterwards, this time into its web advertising business. As if all that weren’t enough, the NY Times reports that a US law firm and European public affairs company have created a joint venture to help companies file civil claims against Google in the event that the EC finds it guilty of the first set of charges … 
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European Parliament approves proposal to break up Google – but it doesn’t mean much

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A European Parliament motion calling for the breakup of Google, separating out the search business from the company’s other activities, has been overwhelmingly approved, reports the WSJ.

In a vote in Strasbourg, 384 legislators voted in favor of the controversial initiative, with 174 against and 56 abstentions […]

“Clear adoption by the EP of Digital Single Market motion, including unbundling for search engine if needed,” tweeted Ramon Tremosa I Balcells, a lawmaker from Spain who backed the proposal.

The vote comes just a day after a separate European call for the controversial ‘right to be forgotten‘ ruling to be extended to google.com as well as the European versions of its sites … 
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Google once again facing anti-trust investigation in Europe over Android marketshare

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Google is no stranger to anti-trust lawsuits—especially when it comes to the popularity of its Android platform and the first-party app installation requirements to which it holds third-party handset makers—but European anti-trust regulators are preparing to bring a case against the search giant over that very issue.

It’s already been established in previous cases that in order to use the latest version of Android on their handsets, manufacturers must agree to also install a set of Google-branded apps, such as YouTube and Gmail. The European anti-trust regulators argue that this is an abuse of Google’s 80% marketshare that should be stopped.


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Google finally settles EU anti-trust case, agrees to give equal prominence to rival services

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Photo: npr.org

After more than three years of investigations and negotiations, Google and the European Union anti-trust authorities have finally settled the case in which the company was accused of abusing its dominant position in search.

The tl;dr version of the dispute was that Google search results were giving undue prominence to its own services – such as Google News and Google Shopping – and freezing out rivals. Google was eventually given a deadline of 31st January last year to submit proposals on how it would resolve the problem … 
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European anti-trust case against Google likely to end after fresh proposals

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The European Union’s long-running anti-trust case against Google, in which the search company was accused of using its dominant position in search to stifle competition, looks set to finally be resolved – though we may have to wait until Spring to learn the details.

Reuters reports that Google has made new proposals, which the EU suggests is likely to lead to a settlement.

Joaquin Almunia told lawmakers in the European Parliament he believed the new offer made it easier to see Google’s rivals when making an internet search.

“We have reached a key moment in this case,” Almunia said.

“Now with the significant improvements on the table I think we have the possibility to work again.

“If our investigation of this improved proposal is satisfactory then we will continue the commitments route and end up with a formal decision next spring,” he said, adding: “I think that the settlement route remains the best choice” … 
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Microsoft is David battling Google’s Goliath Monopoly, says outgoing CEO Ballmer

Photo: gamechup.com

In what must surely win some kind of award for irony, Steve ‘dead man walking’ Ballmer repeated his call for Google to face greater scrutiny from competition authorities, describing the search giant as a “monopoly.”

Speaking at an analysts briefing yesterday (via The Verge), the outgoing Microsoft CEO responded to questions about Google’s plans to generate money from online services saying:

Google does it. They have this incredible, amazing, dare I say monopoly that we are the only person left on the planet trying to compete with. We’re the only guys in the world trying.”

Microsoft of course faced numerous anti-trust suits back in the heady days of its dominance of the PC industry, and always dismissed them with the view that consumers make their own choices.

Microsoft’s search service Bing has 17.9 percent of the US search market, a distant second to Google at 67 percent. The disparity is often greater internationally though Google does have competition from Yandex in Russia and Baidu in China.

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Google offering new concessions in EU antitrust case – but neither side saying what they are

Photo: dexigner.com

The on-going saga of the EU’s anti-trust case against Google, accusing it of using its dominant position in search to block competition, continues with Google making fresh proposals to the Competition Commission.

Google’s initial response was to offer to:

  • clearly separate sponsored links from organic search results, and to link to rival search services
  • allow publishers to choose what content is included in Google’s various search results
  • allow website owners to sell advertising from competitor companies alongside Google ads
  • allow advertisers to manage search advertising campaigns across competing platforms …

After seeking feedback on the proposals from other interested parties (read: Microsoft and others who feel they are unfairly treated), the EU rejected them as not going far enough.

Reuters reports that Google has now offered further concessions, but neither Google nor the EU has yet revealed what these are.

Google, Apple, and six other companies must face lawsuit over no-poaching agreements

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Late last week we told you that the U.S. Justice Department apparently had evidence that Google, along with Apple, Adobe, Intuit, Pixar, Intel, Walt Disney and Lucasfilms, entered “no-poach” agreements as part of an antitrust investigation from 2010. U.S. District Judge Lucy H Koh made a statement yesterday at the U.S. District Court in San Jose, Calif., confirming the companies must face a lawsuit. According to the report from Bloomberg, Koh said she would allow plaintiffs to re-file their complaint even if an initial request by the defendants to dismiss the claims is granted.  

Judge Koh’s decision yesterday will result in Google and the other companies having to provide a detailed account of the agreements made with other companies. They must also allow lawyers to take depositions. One lawyer representing the plaintiffs, Joseph Saveri, said, “We get to see what really happened,” claiming the case could result in hundreds of millions of dollars in damages. Google provided statements to Bloomberg claiming they have “always actively and aggressively recruited top talent,” while the others have declined to comment.


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WSJ: Google/Motorola deal faces legal hurdles, Motorola has $2.5B “reverse termination fee”

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After a shocking announcement this morning from Google regarding a $12.5 billion acquisition of Motorola Mobility, most are already discussing what this means for the future of Android. However, a report from WSJ claims their sources are reporting Motorola has an “unusually large” 20% reverse termination fee in place that would see Google paying $2.5 billion if the deal falls through.

The report claims this might be proof Motorola is worried the acquisition could be the subject of antitrust regulators who are already investigating Google for its ability to abuse its market lead. However, Google execs noted in a conference call with financial analysts this morning that they aren’t worried about the deal being seen as anti-competitive in nature.

Why would the deal fall through? The report points to potential legal hurdles in Washington, similar to those that allegedly stopped a Groupon acquisition from happening. Google is already the subject of an antitrust probe related to their purchase of ITA software, and continues to be in the middle of intense legal battles with rival smartphone makers.

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FTC includes Android in anti-trust probe of Google

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The Federal Trade Commission began an anti-trust probe of various Google services six weeks ago after serving the company with a number of “broad subpoenas”. Today, sources familiar with the proceedings report the probe is now extending to Android and Google’s endeavours in the mobile space.

The WSJ explains:

Six weeks after serving Google with broad subpoenas, FTC lawyers, in conjunction with several state attorneys general, have been asking whether Google prevents smartphone manufacturers that use its Android operating system from using competitors’ services, these people said.

They also have inquired whether Google grants preferential placement on its website to its own products, such as Google’s “Places” business listings, its “Shopping results” or Google Finance services above most other results.

This wouldn’t be the first time government has targeted a technology company expanding into areas other than what they’ve been known for, and it certainly wont be the last. Despite that, Google doesn’t seem to be worried… a Google spokesperson had this to say about the probe:

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