According to a hefty legal response seen by WSJ, Google has unsurprisingly said there is “no basis” for the claims. Google’s parent company, Alphabet, has now submitted a lengthy defense to these charges, claiming that Google can not be charged with abusing its market dominance because its search service is free.
Advertisement
The company has been accused that it distorted search results favoring its shopping service.
Vestager can either fine the company up to $6.6 billion euros and order it to stop its anti-competitive business practices or give it the opportunity to change its practices without any sanction or finding of wrongdoing.
“If the Commission decides to end the commitment process it must therefore provide reasons for the change in position, ‘ the document says, arguing that the European Union ‘has not provided substantiated reasons as to why it found the January 2014 commitments insufficient.’ Google now contends that the demands of European Union regulators amount to ‘a demand that [Google] sacrifice quality to subsidise competitors”. “The novelty of the statement of objections’ theory, the selection of the case for commitment negotiation and Google’s good faith participating in these negotiations militate against the imposition of a fine”, the document said.
According to a report from Reuters, the response marshals a number of legal arguments, including the assertion that Google can’t take advantage of its customers because they don’t pay for its services. “No trading relationship exists between Google and its users”. For accusations of abuse of dominance to fly, a trading relationship needs to be in place. The European Commission has been investigating the charges for five years and tried to settle with Google three times previously. The case still has a long way to go though, with the European Union not expected to make its decision until at least next year.
Advertisement
“Imposing a fine in the present case would be inappropriate”.
