Google to Change Its Search System
Google has sent European competition commissioner a proposal to change its search system to avoid legal battle against its market dominance. Google has been under close examination of the European Commission since 2010 when there were complaints from its rivals. The proposal Google sent has not been made public, but their Spokesperson addressed it and said that they addressed four areas that were described as potential concerns by the commissioner. He also added that Google will continue to work cooperatively with the competition commissioner.
The four areas that the proposal covered include the way Google supports its services in its search results. Well, some might feel that since its their search results they can show whatever they like as long as it’s not false or a misrepresentation of other firms. However, there is a possibility that Google might change this to try and be fair so to speak. The second point was on how data from other web sources is being displayed in Google; they try as much as possible to make their own stuff look much more pleasant. The third point deals with the ads shown in search results. The last but not least issue touches upon the way Google influences the ability of purchasing commercials on the rival networks.
There is possibility that European competition commissioner might file a case against Google is some sort of settlement is not reached. This could cost Google 10% of its annual income, which according to last year’s income could reach some $3.8 billion. It is important that Google resolve this issue with a swift settlement rather than a legal battle. Microsoft is also backing this initiative for a more competitive online marketplace. Even though it came two years later, Google’s proposal to offer a remedy is a meaningful acknowledgement of their dominance and recognition, of illegal anti-competitive behavior. It is also necessary that the proposals be examined carefully, to make sure they provide a full compensation for all the damage caused by Google’s behavior and also prevent a repetition of such actions. If Google, for whatever reason, fails to do something there will be grave consequences for online competition, innovation, and consumer choice.