A European regulatory commission has accused Google of stifling competition and innovation through its practices on the internet. The accusation is that Google is favoring its own products on its search engine. It is also accused of favoring its own services for downloading music, streaming videos and booking flights when a person searches for these items using Google’s search engine.
The allegations seem to be well grounded off of solid evidence. Marcio Alaor BMG said that when you search for a product or service using Google, you will find that Google services such as Google music and Google’s own shopping websites are almost always first to appear and are on the top of the search results. This is what Google’s competitors such as Microsoft, Streetmap and TripAdvisor have been complaining about to regulators since 2010. These and other companies have stated the Google is putting its own products, services and adverts before their own, thus hindering competition. This leads to the EU allegation that Google is abusing its power to promote its own products and services.
So what does this mean for the search engine giant? Google has 10 weeks to respond to the allegation. The company so far has released statements denying the allegations made by the EU regulatory commission. Google could be fined billions of dollars it it does not resolve this allegation. It could also have to change its business model in Europe to ensure a more level playing field for other companies.