Google EU Antitrust Headache Worsens as Brussels Widens Probe
The long-running stand-off between Alphabet's (GOOGL) - Get Report Google and European Union antitrust watchdogs looks set to drag on for some time after the European Commission unveiled new charges on Thursday.
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In a new statement of objections, the Commission accuses Google of abusing its dominant position by artificially restricting the ability of third-party websites to display search ads from Google's rivals.
The EC also separately sent a second statement of objections reinforcing its preliminary finding that Google systematically favors its comparison shopping service in search results.
Speaking to journalists at EC headquarters, Competition Commissioner Margrethe Vestager said the charge sheet related to online advertising "takes issue with Google's contracts with the largest third-party websites."
Vestager added, "It sets out our preliminary view that for the last 10 years, those contracts have restricted third-party websites' ability to get search adverts from Google's competitors."
But she also acknowledged that in the course of the antitrust proceedings, Google has decided to give third-party websites "more freedom" to display competing ads.
"We will keep a close eye on that, to see what effect the changes will have on the market," she said.
Alphabet and Google have 10 weeks to respond to the latest accusations, though the commission has no legal deadline for wrapping up its case which could result in hefty fines.
"We believe that our innovations and product improvements have increased choice for European consumers and promote competition," Google said in a Thursday statement, promising a detailed response in coming weeks.
The latest accusations come on top of an EC complaint issued in April against Google's Android operating system, more than five years after EU antitrust busters launched a probe under Vestager's predecessor, Joaquin Almunia.