After the European Commission alleged charges of antitrust against Google Inc in April, the company has gone ahead and rejected all charges that claim how the latter has been abusing market power. The charges leveled against Google exposed it to the risk of coughing up a heavy fine unless it changed the way it does business.
What Are The Allegations?
To begin with the Commission alleged that Google played up with its search results so as to benefit its own shopping service while causing losses for competitors and customers. However, Kent Walker, the general counsel of Google has blogged that economic data for the last ten years and related documentation prove the competitiveness of Google search. He went on to write, “We believe that the statement of objection’s preliminary conclusions is wrong as a matter of fact, law, and economics.” These comments came at a time when Google submitted a 150-pager report as a counter statement to the charges leveled by the Commission.
The Penalty Involved
Ricardo Cardoso, spokesperson for the Commission has said that they have received the counter response and has stated that the former will consider the same carefully. If found guilty Google might have to forego up to 10 per cent of its annual global turnover as penalty to the Commission.