Google Targeted as EU Weighs Call to Split Web-Search Providers

By Aoife White

European Union lawmakers seeking to combat what they consider anti-competitive behavior by Google Inc. (GOOG) are weighing a call to split up companies that focus on Web search, according to a document prepared by members of the European Parliament.
One draft obtained by Bloomberg News asks regulators to tackle what it says are abusive practices by the Internet search provider. The European Commission should “consider proposals with the aim of unbundling search engines from other commercial services” to aid Europe’s digital industry, according to another version of a draft resolution prepared by members of the European People’s Party, which didn’t specifically mention Google.
Google, which has more than 90 percent of the search market in many European countries, is facing threats to its business, including a possible Internet copyright levy, that add to a lengthy EU antitrust investigation into allegations that it discriminates against rivals. Lawmakers Andreas Schwab and Ramon Tremosa earlier this week called for legislation if the EU can’t resolve its probe.
“The possibility of this happening is slim to none at this point, we wil
l have to see what they are proposing,” said Brian Wieser, an analyst at Pivotal Research Group LLC. “Many Europeans are disappointed that a European champion hasn’t emerged in any way to upend Google and to offer any meaningful challenge.”

Photographer: Freya Ingrid Morales/Bloomberg

Margrethe Vestager, the EU’s antitrust chief who took office on Nov. 1, said last week... Read More

Next Steps

Lawmakers from the EPP and liberal groups plan to ask the entire assembly to vote on Nov. 26 on the resolution. The final draft of their text must still be negotiated. While the version citing Google doesn’t specifically ask for Google to be broken up, it does ask regulators to “act decisively on all concerns” given Google’s high market share.
The draft urges EU antitrust regulators to agree only to concessions by the company that “immediately and unequivocally” prevent it from discriminating against rivals. It also asks for users to be shown search results that are “best for them, rather than best for Google.”
The document says the EU should send antitrust objections to the company, a move that can lead to fines unless there’s a settlement.
Niki Christoff, a spokeswoman for Mountain View, California-based Google, declined to comment. The European Commission declined to immediately comment.
Margrethe Vestager, the EU’s antitrust chief who took office on Nov. 1, said last week she needed “some time to decide on the next steps” in the investigation and would consult those directly affected by Google’s practices. While Google has made several attempts to settle the EU’s four-year probe, the EU hasn’t deemed any of its proposals acceptable.
The draft text calling for splitting up search companies was reported yesterday by the Financial Times.