Brad Smith, Microsoft Corporation's Vice President & General Counsel, announced on a recent blog that Microsoft had filed a formal complaint with the European Commission ('Commission') alleging that Google had, through a number of actions, acted to "entrench its dominance in the markets for online search and search advertising" in Europe.
Whilst complimenting Google for its genuine innovations, Microsoft alleges that Google's behaviour is impeding competition by other search engines, such as Microsoft's Bing and Yahoo! (with whom Microsoft has entered into a partnership).
Microsoft's complaint adds to the existing objections lodged by other competing search service providers – which allege that their services have been treated unfavourably by Google in its unpaid and sponsored search results. As a result of these complaints the Commission announced on 30 November 2010 that it had opened a formal investigation into an alleged breach of Article 102 TFEU by Google (see Community Week issue 500). The Commission's investigation also focuses on allegations that Google imposed exclusivity obligations preventing advertising partners from placing specific types of competing adverts on their websites with the aim of isolating competing search engines.
Smith cites instances where Google has allegedly "walled off" access to content and information which is required by competitors to provide accurate search results to consumers and which is necessary to attract advertisers.
By way of example, Smith alleges that Google is responsible for blocking access to certain content owned by book publishers and for discriminating against potential competitors in the placing of adverts through its Google AdWords system. A further claim is that smartphones operating a Windows system do not have an equivalent functionality with YouTube (which Google has owned since 2006) when compared to smartphones using Google's Android system.
Smith said, "We readily appreciate that Google should continue to have the freedom to innovate. But it shouldn't be permitted to pursue practices that restrict others from innovating and offering competitive alternatives."
In response, Google stated that it was not surprised by the complaint and made clear that it would continue to engage in dialogue with the Commission.
The complaint represents something of a turnaround, with Microsoft - a veteran of Commission investigations and the subject of extensive penalty fines - now in the unusual position of complainant rather than the subject of the complaint.
To view Community Week Issue 516, 8 April 2011 in full click here.
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