EU Closely Examining Antitrust Allegations In Search Services
July 7, 2010
| 4:17 PM
The European Commission's top antitrust official said Wednesday that he is closely examining allegations of anticompetitive behavior related to Internet search services.
In a speech at an e-commerce antitrust conference in London, Joaquin Almunia, the commission's vice president for competition policy, did not specifically name Google, but the Internet search and advertising firm was the subject of antitrust complaints filed in February by three Internet competitors. The complaints were filed with the commission, the European Union's regulatory arm, by the British price comparison site Foundem, a French legal search engine called ejustice.fr, and Microsoft's Ciao from Bing.
In his prepared remarks, Almunia said "My services are currently examining some allegations of anti-competitive conduct in relation to search. The work is at an early stage, but given the importance of search to a competitive online marketplace, I am looking at the allegations very carefully."
Foundem and ejustice.fr claimed that Google's algorithms demoted the two sites in Google's search results.
In his remarks, Almunia voiced concern about the potential implications of the manipulation of search results by a search engine. "If results on a search engine for instance are being manipulated, it may well make a difference on the market if consumers know about it. But is transparency enough? None of these answers are easy," he said.
Google has staunchly denied claims that it manipulates its search results either in favor of its own products or to hamper others. "We are confident that our business operates in the interests of users and partners, as well as in line with European competition law," Google Senior Competition Counsel Julia Holtz said in a February blog post announcing the allegations filed against the company.
In discussing his overall approach to competition policy when it comes to technology and Internet firms, Almunia said he believes the "principles of competition must be maintained in the digital economy with the same intensity that they are imposed in the brick and mortar world."
"Sound and careful regulatory policy must support and complement competition policy in creating the appropriate environment for the digital economy," he added. "Indeed state intervention might be needed to achieve public interest objectives such as universal access to basic services, scientific and artistic creation, regional cohesion or privacy and safety protection."
Still, Almunia conceded that understanding the dynamics of online markets is a "complex task" given their "innovative business models that are constantly evolving."
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