Search Engine Land
  • SEO
    • > All SEO
    • > What Is SEO?
    • > SEO Periodic Table
    • > Google: SEO
    • > Bing SEO
    • > Google Algorithm Updates
  • PPC
    • > All PPC
    • > What is PPC?
    • > Google Ads
    • > Microsoft Ads
    • > The Periodic Tables of PPC
  • Focuses
    • > Local
    • > Commerce
    • > Shopify SEO Guide
    • > Content
    • > Email Marketing Periodic Table
    • > Social Media Marketing
    • > Analytics
    • > Search Engine Land Awards
    • > All Focuses
  • SMX
  • Webinars
  • Intelligence Reports
  • White Papers
  • About
    • > About Search Engine Land
    • > Newsletter
    • > Third Door Media
    • > Advertise

Processing...Please wait.

Search Engine Land » Channel » Content » Is Google’s Antitrust Settlement Offer To Europe Dead On Arrival?

Is Google’s Antitrust Settlement Offer To Europe Dead On Arrival?

The European Union has “accepted” Google’s formal antitrust settlement proposal — subject to “market testing.” As a practical matter, that means EU Competition Commissioner Joaquín Almunia is circulating it among Google’s critics and competitors for reaction. However, there has already been plenty of (negative) reaction based on the information that came out last week in […]

Greg Sterling on April 24, 2013 at 1:17 pm

google-eu-featuredThe European Union has “accepted” Google’s formal antitrust settlement proposal — subject to “market testing.” As a practical matter, that means EU Competition Commissioner Joaquín Almunia is circulating it among Google’s critics and competitors for reaction. However, there has already been plenty of (negative) reaction based on the information that came out last week in news reports.

That leads to the question: is Google’s settlement proposal dead on arrival? And if so, what will Almunia and the Europeans do? Is litigation inevitable?

The issue that Google’s competitors and critics care most about is the so-called “search bias” question (also known as Universal Search), where Google shows content from its “other properties” to answer the query. There’s a philosophical difference between Google and its critics on this point. Google doesn’t see Maps, news or travel search results as separate products. Google’s competitors view them, however, as distinct products or verticals.

Regarding “vertical search,” Google-proposed remedies include the following:

  • Google labeling its own properties as such
  • Google agreeing to “prominently show at least three links to rival, non-Google sites that have information relevant to a user’s query”
  • Third party verification of Google’s compliance

Almost immediately after these details were leaked, Bloomberg ran an article, citing competitor reaction. That reaction characterized the proposal as a “non starter.” However, critics are just now getting a close look at the substance of the settlement proposal.

Today, anti-Google lobbying group FairSearch.org — a consortium of 17 companies including Microsoft, Kayak, Oracle, Nokia and others — issued a statement that attempts to put additional pressure on Almunia and his commission to “hold the line” and/or obtain further concessions from Google:

Since it has taken a year to extract a final proposal from Google, FairSearch believes the ‘market test’ should last three months to ensure that interested parties have enough time to carefully provide the European Commission with their expertise on the effectiveness of Google’s proposal. As we have said, we will comment on Google’s proposed remedies after the Commission shares them.

European Commission Vice President Joaquin Almunia has set a high bar that any proposal from Google must meet to pre-empt formal proceedings against the company, including:

  1. Will it end Google’s diversion of traffic away from other sites through preferential treatment for Google’s own properties?
  2. Will it swiftly restore consumers’ access to a truly competitive marketplace for search and related online services?
  3. Will an independent third party be able to verify that Google is not circumventing its own proposed commitments?

The members of FairSearch plan to study the effects of Google’s proposal, and call on Google to release any test results it has provided the Commission to show how its proposal will fix the abuses of dominance the Commission’s own investigation revealed.

Applying a real ‘market test’ to Google’s proposal is an important step to ensuring that the Commission’s long history of leadership in international antitrust enforcement continues for many years to come.

This idea of “diversion of traffic” is a key phrase in the above statement and reflects a kind of “entitlement mentality” among the consortium. One could persuasively argue that Google qualifies as a “monopoly” in Europe with its 94 percent search market share. If one accepts this, the question becomes what to do about it. Consumers do have choices and have chosen Google; there are alternatives, but they’re largely not being used.

It may be unrealistic (and unworkable) for Google’s rivals to ask for further concessions on vertical search. The “three prominent links” is a striking concession, although how it will operate in practice is unknown and potentially problematic. Will there be a separate algorithm or will these just be the top three organic links called out? Competitors will want insight and access to those slots.

FairSearch and other Google critics argue they simply want to see competition and “fairness” restored to the market. In practice, they want traffic and near-guarantees that they will not be displaced by current and future Google products (e.g., Maps/Travel). That’s like asking the EU to freeze the market in time. As the FTC said, antitrust rules should protect competition, not individual competitors.

It may be possible to obtain a few additional concessions from Google. However Almunia will need, like a good mediator, to put pressure on FairSearch and its allies to accept that they’re not going to get everything they want out of the process. They don’t yet seem ready to accept that possibility.

And if Google’s rivals are unified in their opposition to the settlement proposal — and Almunia wants to appease them — the only next step may be litigation, which neither Almunia nor Google ultimately want.

Postscript: I was corrected by a FairSearch spokesperson who said that the phrase “diversion of traffic” used in the group’s statement is taken verbatim from earlier remarks by Commissioner Almunia and not the coalition’s language. He also strongly disputed my characterization of an “entitlement mentality” among the membership in my discussion above.


Opinions expressed in this article are those of the guest author and not necessarily Search Engine Land. Staff authors are listed here.


New on Search Engine Land

    Webinar: Transform your content operations with DAM

    Lucid visibility: How a publisher broke into Google Discover in less than 30 days from launch

    We’ve crawled the web for 32 years: What’s changed?

    GA4 isn’t all it’s cracked up to be. What would it look like to switch?

    What to look for in a technical SEO audit

About The Author

Greg Sterling
Greg Sterling is a Contributing Editor to Search Engine Land, a member of the programming team for SMX events and the VP, Market Insights at Uberall.

Related Topics

ContentGoogleSEO

Get the daily newsletter search marketers rely on.

Processing...Please wait.

See terms.

ATTEND OUR EVENTS

Learn actionable search marketing tactics that can help you drive more traffic, leads, and revenue.

March 8-9, 2022: Master Classes (virtual)

June 14-15, 2022: SMX Advanced (virtual)

November 15-16, 2022: SMX Next (virtual)

Learn More About Our SMX Events

Discover time-saving technologies and actionable tactics that can help you overcome crucial marketing challenges.

Start Discovering Now: Spring (virtual)

September 28-29, 2022: Fall (virtual)

Learn More About Our MarTech Events

Webinars

Data-Driven Answers to Achieve Omnichannel Success

Is Your Marketing Stack Ready for Omnichannel CX?

Outrank in Organic Search with These 5 Core Tactics

See More Webinars

Intelligence Reports

Enterprise SEO Platforms: A Marketer’s Guide

Enterprise Identity Resolution Platforms

Email Marketing Platforms: A Marketer’s Guide

Enterprise Sales Enablement Platforms: A Marketer’s Guide

Enterprise Digital Experience Platforms: A Marketer’s Guide

Enterprise Call Analytics Platforms: A Marketer’s Guide

See More Intelligence Reports

White Papers

Reputation Management For Healthcare Organizations

Unlock the App Marketing Potential of QR Codes

Realising the power of virtual events for demand generation

The Progressive Marketer’s Ultimate Events Strategy 2022 Worksheet

CMO Guide: How to Plan Smart and Pivot Fast

See More Whitepapers

Receive daily search news and analysis.

Processing...Please wait.

Topics

  • SEO
  • PPC

Our Events

  • Search Marketing Expo - SMX
  • MarTech

About

  • About Us
  • Contact
  • Privacy
  • Marketing Opportunities
  • Staff

Follow Us

  • Facebook
  • Twitter
  • LinkedIn
  • Newsletters
  • RSS
  • Youtube

© 2022 Third Door Media, Inc. All rights reserved.