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Image header Agence Europe
Europe Daily Bulletin No. 11083
ECONOMY - FINANCE - BUSINESS / (ae) antitrust

Almunia says further investigations into Google are possible

Brussels, 20/05/2014 (Agence Europe) - In a letter in answer to a letter from French and German ministers Arnaud Montebourg and Sigmar Gabriel, Competition Commissioner Joaquin Almunia wrote on Tuesday 20 May that a single investigation may not deal with all Google's trade practices.

The two ministers have added their voices to those of the people concerned at the low level of commitments offered by US internet giant Google in response to accusations of abuse of its dominant position on the online search and advertising market, commitments that would become legally binding for five years if the Commission accepts them. Montebourg and Gabriel say that the investigation should also cover other Google trade practices.

Almunia told the ministers that the 2011 investigation looked at four competition issues. The Commission feels that the commitments offered by Google could solve the four problems in question, and it is sending a letter to the 19 plaintiffs to this effect, a letter to which they will then be able to reply. After it has read their comments, the Commission will take the final decision, probably after the summer break. On Tuesday, Almunia said that he thought the decision would be taken using Article 9 (Google offering commitments) rather than Article 7 (commitments imposed by the Commission along with a possible fine). Without wanting to comment on how the talks with the plaintiffs might go, Almunia said the Commission had strong arguments to submit to them.

Under its powers over the control of state aid, the Commission is collecting information about tax rulings, patent boxes and other tax schemes in the member states, and is currently investigating the Android operating system, over which it may decide to open a formal investigation.

The complaint lodged by Open Internet Project, an umbrella group of European publishing associations and publishers, may lead the Commission to open an investigation into their allegations and Almunia said it seemed better to lead a new investigation under new proceedings rather than to delay solving the current issues by expanding the proceedings covering them.

On Montebourg and Gabriel's idea of holding a third consultation of market players, Almunia said this would not provide any new information but would delay the investigation still further. Montebourg and Gabriel said that a third consultation process might lead the Commission to decide to open infringement proceedings.

Almunia is facing increased opposition over the Google issue. Meeting behind closed doors with a number of MEPs in Strasbourg in March, he tried to allay criticisms from nine European Commissioners, including Michel Barnier (of France) and Günter Oettinger (of Germany). In April, the European consumers' bureau BEUC joined the plaintiffs. (EL)

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