Gavel

EC ponders Google breakup options

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(Image: IDGNS)

25 November 2014

Breaking up Google by separating its search engine from other commercial services is only one of the actions the European Commission could take to resolve the company’s antitrust problems, say members of Parliament who are proposing the split.

A draft version of a European Parliament resolution, reported by news outlets over the weekend, calls on the Commission to break up Google as one way to solve competition issues with the search engine provider, which is the biggest in Europe.

The Parliament is set to discuss the resolution, which also deals with a range of other European tech issues, on Wednesday in Strasbourg and vote on it on Thursday. As the resolution is still a draft, its text could still change. If adopted, it would also be non-binding though it would force a response from the Commission.

The resolution was drafted by German Parliament member Andreas Schwab, a member of the centre-right European People’s Party, and Ramon Tremosa of Spain, a member of the Parliament’s Liberal group.

In the draft, they call on the Commission “to consider proposals with the aim of unbundling search engines from other commercial services as one potential long-term solution” to deal with competition issues in the sector.

Google, which has captured about 90% of the EU’s search market, has been under antitrust scrutiny since competitors filed complaints with the European Commission in 2010. They said Google favored its own services in search results while reducing the visibility of results from competing sites. So far, the issue has not been resolved. Earlier this month the EU’s new antitrust chief, Margrethe Vestager, announced she was planning to get up to speed with the issue by talking to directly affected parties.

Monopoly games
Tremosa and Schwab said in a joint news release on Monday that they are not against Google per se, but are rather against monopolies.

“We want fair and neutral search in the interest of consumers. Unbundling is one of the ideas but we proposed several ideas of solutions that are on the table,” they said. One of them is a rotation mechanism, which would display commercial services from Google and its competitors in the same location and with the same prominence on the search results page.

“The mechanism would hinder Google from applying the ranking algorithms that it currently uses. Thereby, it would be guaranteed that users receive relevant results while benefiting from greater choice,” the MEPs said, comparing the solution to the Browser Choice Screen that Microsoft had to introduce after a EU antitrust investigation in 2009. The screen is shown to Windows users who have Internet Explorer set as their default browser.

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