Thursday, August 27, 2015

Dominance, Google responds to hard-nosed EU “unfounded accusations” – Il Sole 24 Ore

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This entry was posted on August 27, 2015 at 19:24.
The last change is the August 27, 2015 at 19:40.

Make yourself comfortable, because the soap opera which is between the European Commission and Google is still long. Those who expected a mea culpa by the Mountain View giant, about allegations came from Brussels last April regarding hypothetical anti-competitive, was disappointed. Google not only does not accept accusations formulated by the Antitrust EU, but attacks. And it does so with a post on his official blog, written by Kent Walker (Senior Vice President & amp; General Counsel Google, ed) entitled quite clear: “Improving the quality is not anti-competitive.”

It was a long-awaited answer from Big G. The deadline for filing a reply was set for the 30th of August, but it all happened a few minutes ago, three days in advance. And if 15 April by the European Commission seemed determined to keep a soft approach – attacking Google and considering it guilty of infringing the competition, saying he was still ready but the road of dialogue – now comes from California defensive harangue that seems to open a real wall against Wall. The most pessimistic are already thinking epilogue saltier: megamulta more than $ 6 billion. However, it seems too early to say.

“unfounded accusations”
“Google has always been committed to improving its services, creating new ways to provide better answers and show more useful ads” is written in the post Official, in which Google claims to have taken “seriously the issues raised in the statement of objections from the European Commission, according to which our innovations would be anti-competitive.” But at the same time it believes “that such statements are not correct.” According to Google, the allegations of the European Commission claim that “showing paid ads of merchants, Google divert traffic from other comparison shopping services. But communication does not support this claim, it does not take into account the significant benefits for consumers and advertisers and does not indicate a clear legal basis for such claims connected to the proposed solution. ” “Our answer – is written in the post written by Walker – provides evidence and data showing the invalidity of the issues raised in the communication. We use traffic analysis to respond to claims that our ads and our specialized organic results have harmed competition by preventing aggregators to shopping and finally consumers. Economic data collected over a period of more than a decade, extensive documentation and the statements of the applicants confirm that the research products online is highly competitive. In our response – confirm by Google – we show that communication is not correct because it ignores the impact of online shopping services such as Amazon and eBay, which have carved out a slice of traffic much bigger than ads Google Shopping. ”

Big G, in short, brings up vertical motors, real titans of e-commerce, and made it known that in the last decade the EU has sent “more than 20 billion free to click aggregators Shopping, in the countries concerned by the Commission communication, an increase of 227% organic traffic. ” The defense of Mountain View, in short, is clear: “Google Shopping is not anti-competitive. On the contrary, show ads based on structured data supplied by traders clearly improves the quality of ads and makes it easier for consumers to find what they are looking. ” And again: “The data users and advertisers confirm the appreciation for these formats. This is not “favor”, but to give our customers and advertisers what they find most useful. ” The solution identified by the EU, however, is rejected without appeal, because “harm the quality and relevance of our results.” “Our search engine – is written – it is designed to provide the most relevant results and ads more useful for each query. Users and advertisers benefit from this service, when it works well. And the same goes for Google. It is in our interest to provide high quality results and ads that lead people to what they are looking for. Are more relevant ads, better connect potential buyers to potential sellers, thus generating more benefits for everyone. “

The highlight, however, are the closing bars. Google speaks bluntly of preliminary conclusions (the EU, ed) “wrong from the point of view of the facts, legal and economic. We are ready and willing to discuss our response and the evidence supporting the Commission in the interest of promoting possibilities for users choice and free competition. “

How to react, now, from Brussels? Hard to say. But think of a mediation, given the circumstances, it seems impossible. Not to mention that more from 15 April the EU Antitrust opened a separate investigation but always against Google on the Android operating system. Another case that alloy thorny Mountain View in Brussels. Six thousand kilometers of fire.
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