European MPs have had Google in their sights for some time now, and have just upped the ante by voting to “unbundle search engines from commercial services”, which would effectively mean breaking up the company.
It should be noted yesterday’s vote at the European Parliament is completely unenforceable – it doesn’t have the power to pass any new legislation at all. The vote is more of a recommendation to the European Commission and EU member states than anything else, but it does increase the likelihood Google might face regulatory problems later.
The vote focused on whether or not search functionality should be kept apart from other commercial services, in order to reduce the potential of access being abused. Google wasn’t specifically named, but it’s clearly on the EU’s hit-list given that it accounts for over 90 percent of all search queries made in Europe.
The kerfuffle stems from a 2010 complaint made by some of Google’s rivals that it’s biased towards its own products and services in search results. That prompted a long-winded investigation that finally seems to be coming to a head. According to the European Parliament’s press release, “the online search market is of particular importance in ensuring competitive conditions within the digital single market” and welcomes the Commission’s pledges to investigate further the search engines’ practices.
It’s doubtful that Google will actually face any repercussions from this vote. As Tim Worsall points out in Forbes, while Google totally and utterly dominates the search market in Europe, it’s not a “true” mononpoly. Google’s market dominance has arrived simply because consumers prefer it to other services. Anyone can set up a search engine and fight with Google, and it’s easy for consumers to use alternatives. There’s no lock-in or barriers to exit or entry, and with Google being willing to address concerns that it’s biased towards its own products and services, it will be difficult to prove the company has been anti-competitive.
Reuters says European Competition Commissioner Margrethe Vestager will “review the case and talk to complainants before deciding on the next step”. As for Google itself, it declined to comment.
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