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How Google's antitrust siege began not far from Windsor Castle ramparts How Google's antitrust siege began not far from Windsor Castle ramparts
(35 minutes later)
It began in the English home counties, not far from Windsor Castle, when a small shopping comparison website decided to launch a complaint against Google with the European commission.It began in the English home counties, not far from Windsor Castle, when a small shopping comparison website decided to launch a complaint against Google with the European commission.
Berkshire-based Foundem formally accused Google in November 2009, claiming the Silicon Valley company abused its monopoly position by deliberately and systematically lowering rivals’ sites in its search engine results.Berkshire-based Foundem formally accused Google in November 2009, claiming the Silicon Valley company abused its monopoly position by deliberately and systematically lowering rivals’ sites in its search engine results.
Related: Revealed: how Google enlisted congressmen it bankrolled to fight $6bn EU antitrust case
When European officials launched an investigation into the allegations in late 2010, the spectre of Microsoft’s 14-year antitrust battle with Europe loomed large over Google.When European officials launched an investigation into the allegations in late 2010, the spectre of Microsoft’s 14-year antitrust battle with Europe loomed large over Google.
Five years later, and with no end in sight, Google’s own antitrust showdown in Brussels has proved to be as tortuous as the company must have initially feared. The case has since snowballed as an assertive chorus of complainants – including powerful German publisher Axel Springer and rival US companies such as Microsoft and Expedia – have piled in on the action against Google.Five years later, and with no end in sight, Google’s own antitrust showdown in Brussels has proved to be as tortuous as the company must have initially feared. The case has since snowballed as an assertive chorus of complainants – including powerful German publisher Axel Springer and rival US companies such as Microsoft and Expedia – have piled in on the action against Google.
The stakes are high for Google. If found guilty, it could face burdensome regulations, severely altering its business in Europe, alongside fines of up to 10% of annual revenues, amounting to more than €6bn (£4.3bn) in Google’s case.The stakes are high for Google. If found guilty, it could face burdensome regulations, severely altering its business in Europe, alongside fines of up to 10% of annual revenues, amounting to more than €6bn (£4.3bn) in Google’s case.
For years, Google and the then EU’s competition commissioner, Joaquín Almunia, entangled themselves in negotiations, thrashing out three settlement offers. While Almunia’s had broad powers at his disposal, able to impose a punishment without judicial approval for instance, the Spaniard made a negotiated settlement a top priority.For years, Google and the then EU’s competition commissioner, Joaquín Almunia, entangled themselves in negotiations, thrashing out three settlement offers. While Almunia’s had broad powers at his disposal, able to impose a punishment without judicial approval for instance, the Spaniard made a negotiated settlement a top priority.
But during the back-and-forth, European sentiment began to turn sharply against US tech companies.But during the back-and-forth, European sentiment began to turn sharply against US tech companies.
Following Edward Snowden’s revelations, in which the likes of Google featured prominently, unease with Silicon Valley’s power spread in Europe. Suddenly, US tech firms began facing heightened scrutiny of everything from their tax arrangements to their seemingly insatiable appetites for our personal online data.Following Edward Snowden’s revelations, in which the likes of Google featured prominently, unease with Silicon Valley’s power spread in Europe. Suddenly, US tech firms began facing heightened scrutiny of everything from their tax arrangements to their seemingly insatiable appetites for our personal online data.
Undeterred, Almunia pressed ahead. In February 2014, Google agreed a settlement that would avoid costly fines and arduous court battles, but the deal still required formal approval from the rest of the European commission.Undeterred, Almunia pressed ahead. In February 2014, Google agreed a settlement that would avoid costly fines and arduous court battles, but the deal still required formal approval from the rest of the European commission.
As details of the proposed agreement emerged, Google conceded it would make “significant changes” to the way it operated in Europe and – breathing a provisional sigh of relief – said it was looking forward to finally resolving the matter.As details of the proposed agreement emerged, Google conceded it would make “significant changes” to the way it operated in Europe and – breathing a provisional sigh of relief – said it was looking forward to finally resolving the matter.
It didn’t take long for the deal to come under attack. Almunia soon came under pressure from commission colleagues, MEPs and senior German and French ministers, who criticised plans to settle with Google and urged him to reconsider.It didn’t take long for the deal to come under attack. Almunia soon came under pressure from commission colleagues, MEPs and senior German and French ministers, who criticised plans to settle with Google and urged him to reconsider.
Once again, Almunia pressed on. In June 2014, poised to accept Google’s carefully crafted third offer to settle the dispute, his team began writing to complainants to say he had rejected their claims.Once again, Almunia pressed on. In June 2014, poised to accept Google’s carefully crafted third offer to settle the dispute, his team began writing to complainants to say he had rejected their claims.
And then came the twist. Over that summer Almunia appeared to change his mind. In a stunning about-turn in September 2014, he in effect tore up the third version of Google’s draft settlement and reopened the investigation, maddening the tech firm. The deal was off.And then came the twist. Over that summer Almunia appeared to change his mind. In a stunning about-turn in September 2014, he in effect tore up the third version of Google’s draft settlement and reopened the investigation, maddening the tech firm. The deal was off.
Two months later, Almunia’s term as competition commissioner expired. Enter his successor: Margrethe Vestager, a former Danish politician with a no-nonsense reputation, said to have been the inspiration for the central character in Denmark’s popular political TV drama Borgen.Two months later, Almunia’s term as competition commissioner expired. Enter his successor: Margrethe Vestager, a former Danish politician with a no-nonsense reputation, said to have been the inspiration for the central character in Denmark’s popular political TV drama Borgen.
Six months into the job, Vestager threw down the gauntlet and issued Google with statement of objections, formally accusing the company of abusing its dominance in online searches. Putting further pressure on Google, she announced a separate investigation into its Android mobile operating system.Six months into the job, Vestager threw down the gauntlet and issued Google with statement of objections, formally accusing the company of abusing its dominance in online searches. Putting further pressure on Google, she announced a separate investigation into its Android mobile operating system.
Google has categorically rejected the formal charges brought by Vestager, who is currently examining its 100-plus page response while considering two further investigations into the company. Speaking to the Wall Street Journal in October, Vestager indicated she would pursue the US tech firm on multiple fronts.Google has categorically rejected the formal charges brought by Vestager, who is currently examining its 100-plus page response while considering two further investigations into the company. Speaking to the Wall Street Journal in October, Vestager indicated she would pursue the US tech firm on multiple fronts.
Alarmingly for Google, its business in Europe – which has grown considerably since Foundem’s original complaint in 2009 – appears to have caught Vestager’s eye.Alarmingly for Google, its business in Europe – which has grown considerably since Foundem’s original complaint in 2009 – appears to have caught Vestager’s eye.
“I do not think of it as one Google case but literally as different investigations and different cases,” she said. “What they have in common is that the name Google appears in each one, but apart from that they are very different.”“I do not think of it as one Google case but literally as different investigations and different cases,” she said. “What they have in common is that the name Google appears in each one, but apart from that they are very different.”