Google Inc has rejected the antitrust charges being levied on it by the EU. The charge is about abuse of Google’s hold over markets. The charge involves a hefty fine that the company needs to pay if its business practices are not altered. The accusation was filed by the European Commission in the month of April which stated that Google has distorted the search results of the internet in favor of the shopping service that it provides. This is an unfair business practice that affects consumers and rival companies.
The general counsel of Google has responded that, economic data have been mined spanning a decade and every statement and document of the complainants have been evaluated to show that the product search results have been kept competitive and robust. The preliminary conclusions that have been made by the complainants are unfounded as per Google, which can be verified by law, economics and statistics figures.
In order to counter the charges of the commission, the company has submitted a report of 150 pages. The receipt of the document has been confirmed by EU and they have stated that the document and other findings will be considered carefully in order to decide on the next step. If the company is found guilty of the charges levied, the company might face a hefty fee. As per the usual norms of the antitrust authorities, the wrongdoers are asked to pay a fee that is equivalent of ten percent of the turnover that is earned from their global operations.
Walker has mentioned many points in favor of Google’s activities as against the antitrust allegations that are being made against the company by the EU. For instance, Walker stated that eBay and Amazon offer stiff competition that has not been counted in the allegations. Internet traffic has risen above two hundred percent over the last decade. This is also applicable in countries from where the accusations have risen.
Many competitors like Fairsearch which is a lobby group of members like Tripadvisor, Nokia and Microsoft state that this kind of cases with similar arguments is often seen in EU antitrust legal wars. The remedy that is being demanded cannot be done as it will cause market and technical chaos and disturbance. There is one study that backs Google’s arguments which is conducted by Centre for European Reform. This is a think tank organization that is pro EU. The survey covered prices of a certain group of items and the finding was that Google Shopping provided all items at a 2.9 percent cheaper rate.