November 15, 2024

E.U. and Google to Discuss Antitrust Issues

BRUSSELS — The European Union’s top antitrust regulator is expected to meet with Google executives early this week as settlement talks between the search giant and the U.S. authorities gain momentum.

The Europeans have been seeking a settlement with Google since May, and Joaquín Almunia, the Union’s competition commissioner, and Eric E. Schmidt, the executive chairman of Google, have met on previous occasions trying to reach an accord.

But the Europeans have been pressing Google harder than their U.S counterparts to address accusations that the company biases its search results to favor its own services like mapping and online shopping. That makes the expected talks between Mr. Schmidt and Mr. Almunia particularly delicate.

The two men could meet as soon as Tuesday, according to a person with knowledge of the talks who spoke on condition of anonymity as the meeting was to be private.

While Google is the dominant search engine in the United States, it holds even greater sway in Europe, accounting for more than 90 percent of searches in a number of major markets. That could leave rivals like Microsoft scope to try to set some rules — at least in the European Union, where regulators often rely more on complaints by competitors than in the United States — for how Google ranks competing services.

After a two-year inquiry, Mr. Almunia said in May that Google might have abused its dominance in Internet search and advertising, giving its own products an advantage over those of rivals.

“Google displays links to its own vertical search services differently than it does for links to competitors,” Mr. Almunia said in a statement then. “We are concerned that this may result in preferential treatment compared to those of competing services, which may be hurt as a consequence.”

The accusation that Google biases its search results to favor its own services, which originally was a main issue in the U.S. talks, has been taken off the table there, two people who have been briefed on those discussions said Sunday. They spoke on the condition of anonymity because the negotiations were continuing.

Google has consistently maintained that it offers a neutral, best-for-the-customer result.

Mr. Almunia said in May that Google would need to propose a plan within weeks for changes to various practices, including how it links to competitors’ services. Google made its first formal settlement proposal in July, but the talks have dragged on since.

In September, Mr. Almunia signaled that there were limits to how much longer his office would try to negotiate. But early this month, Mr. Almunia appeared to take a softer tone, saying that time was needed to conclude “conversations” with Google that were going on “quite intensively.”

If Mr. Almunia ultimately accepts a settlement offer, Google would avoid a possible fine of as much as 10 percent of its annual global revenue, about $37.9 billion last year. It would also avoid a guilty finding that could restrict its business activities in Europe.

A settlement would offer advantages for Mr. Almunia, too. He has sought to speed up resolution of antitrust cases to prevent them from dragging out, particularly in the fast-changing technology marketplace, where proposed remedies often rapidly lose their relevance.

As negotiations stand in the U.S. case, Google would make a set of voluntary commitments, the two people briefed on those discussions said.

Google, according to the people, has agreed to refrain from copying summaries of product and restaurant reviews from other Web sites and including them in Google search results, a practice known as screen scraping.

The company would also agree to make it easier for advertisers to transfer data on products, pricing and bidding to Google’s competitors, including Bing from Microsoft, the two people said. Google, they said, would also refrain from striking exclusive deals with Web sites to use Google’s search service.

In addition, Google would sign a consent decree, agreeing to license patents deemed essential for wireless communications on reasonable terms, the two people said. The patent issue is a late entrant to the case. Subpoenas that the U.S. Federal Trade Commission started sending to Internet companies last year laid out a wide-ranging investigation focusing on Google’s conduct in the search business. The Web site Politico reported Saturday that the talks had moved away from search, adding details to reports that Google was resisting a consent decree in that area.

Steve Lohr reported from New York.

Article source: http://www.nytimes.com/2012/12/18/technology/eu-and-google-to-discuss-antitrust-issues.html?partner=rss&emc=rss