miércoles, 26 de julio de 2017

Google case

The biggest fine in competition ruling history. That's the notice that Google received a couple of weeks ago. 2,4 € bn for having given its price-comparison shopping service preferential treatment in its search results over rival offerings. But there are doubts about the solidness of the rationale of the fine.

The Commission said that the company systematically manipulated its results page to promote its own Google Shopping service and push smaller rivals down its search rankings. Even it provided some figures of the outcome of Google´s strategy, It is said that "since the beginning of each abuse, Google’s comparison shopping service has increased its traffic 45-fold in the United Kingdom, 35-fold in Germany, 19-fold in France, 29-fold in the Netherlands, 17-fold in Spain and 14-fold in Italy,” 

Some eyebrows have been raised after the fine has been imposed. There is a misunderstanding how Google could be fined for e-commerce activities without a dominant position in the electronic shopping sector. But this is a misunderstanding of the Google Shopping business. Google Shopping is nothing more (and nothing less) that an kind of advertisement service, the so called Product Listing Adds. So the fine is for taking advantage of its position in the web ads market and taking the information obtained from other services (search, mail, ...) to create and advertisament formula that its rivals can not match.

But also this argument has a flaw. As the economist said, the EC has failed to prove that there is a correlation between its behaviour and the poor performance of competing comparison-shopping services after 2008. It is difficult to estabish if Google Shopping has beat its commpetitor for its own merit or due to the tight integration of Google Shoping with the rest of Google´s service. 

So apart from establishing clearly that Google has a dominant position in the search market and this may help its dominance in other markets, few new things has came with the sentence. It is no surprise that in order to discover new facts for future investigations the EC has opened a call for monitoring Google´s algorithm.

No hay comentarios:

Publicar un comentario

palyginti kainas