EU: Germany offers surprising support for Google deal

While Google continues to face intense scrutiny within Germany, the latest reports say Germany’s competition authorities actually support the European Commission’s highly criticized settlement with the conglomerate.

According to reports, Germany’s Federal Cartel Office created a 42-page review of the EU settlement and found that the Commission has reached the limits of competition law in the case. According to the Office, the settlement is a “suitable approach to counter the barriers to competitors,” the report says, adding that the Commission used the full extent of antitrust law to crack down on Google as harshly as legally possible.

But as Google faces intense scrutiny by German politicians, including some calls to break up the company, the Office’s report recommends possible changes to EU competition law that would allow authorities to further address the expanding competition concerns felt by consumer advocates and Google rivals in Germany and across the EU. The Office, however, stopped short of suggesting a breakup of Google, warning that steps towards such an action would be misguided.

Germany is not alone in criticizing the EU’s handling of the Google case, which accused Google of abusing its market dominance to highlight its own products in services in search results ahead of rivals’. Most recently, online review site Yelp filed a notice with the Commission against Google; other rivals and consumer advocates have also called on European Commissioner Joaquin Almunia to alter the settlement with Google and intensify its regulation over the company.

Almunia, however, appears steadfast on proceeding with the settlement before he leaves his position at the Commission later this year. In efforts to quell concerns over the agreement, Almunia assured that Google would continue to face a slew of new complaints and competition probes.

Full content: Financial Times

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