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As Europe dangles $6bn fine, Google says it’s removing slaughtered in shopping

In a initial respond to Europe’s new antitrust accusations, Google has expelled information that it says uncover there is extreme foe in a selling comparison marketplace – where it’s stealing slaughtered by Amazon and eBay.

Google has come out overhanging opposite today’s accusations by a EC that it abused a prevalence in hunt to accelerate a possess selling comparison use during a responsibility of little rivals. According to a EC, Google breached antitrust law, and could now face a excellent of adult to $6bn – 10 percent of a annual turnover.

Amit Singhal, SVP of Google Search, said the association “respectfully though strongly” disagreed with a EU’s need to lay grave charges opposite it.

EC commissioner for foe Margrethe Vestager today summarized a EC’s matter of objections, in that it accuses Google of “systematically favoring a possess comparison selling product in a ubiquitous hunt formula page”.

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In a memo to staff, Google has pronounced it has a “very clever case” opposite a accusations, that Singhal fleshed out in a successive blog post entitled ‘searching for harm‘.

As Singhal illustrates with several graphs sourced regulating a possess information on selling site trade in Germany, France, and a UK, both eBay and Amazon are miles forward of Google Shopping, that is battling it out with dozens of smaller, mostly internal providers.

From this Singhal concludes: “It’s transparent that there’s a ton of foe – including from Amazon and eBay, dual of a biggest selling sites in a universe – and Google’s selling formula have not a spoiled a competition.”

Whether this evidence flies with a EC stays to be seen. As a EC already concurred today, there is foe in a selling market, that it is treating as apart to a ubiquitous hunt marketplace – a latter being a one Google is indicted of abusing a prevalence in.

It also remarkable that in Google’s initial try during selling with Froogle, it didn’t use a ubiquitous hunt to foster a selling product over rivals, though that had altered by a time a use became Google Shopping; and a use delivered it aloft rates of growth.

So while a use competence not have finished many to opposite Amazon and eBay, it did nonetheless have a unpropitious outcome on opposition comparison selling sites and so had a disastrous impact on consumers and innovation.

Google has also expelled a initial response to a EC’s new Android probe, that will concentration on either Google struck deals with Android OEMs that forced or gave a incentives to exclusively pre-install Google’s apps. It will also examine either Google prevented OEMs from building split versions of Android; and either Google blocked rivals by bundling certain Google apps on Android.

Hiroshi Lockheimer, Google’s VP of engineering for Android, quickly sum dual forms of agreements Google has with OEMs though pronounced they are intentional and that Android can be used but Google services.

The initial form regards a “non-fragmentation clauses” that Google reportedly began tightening adult in 2011, causing some regard Android wasn’t as open as it seemed.

Lockheimer says a “anti-fragmentation” agreements, that extent a how many OEMs customise Android, are to “ensure apps work opposite all sorts of opposite Android devices”.

Meanwhile a app placement agreements “make certain that people get a good ‘out of a box’ knowledge with useful apps right there on a home screen”, he said, such as maps and email.

“This also helps manufacturers of Android inclination contest with Apple, Microsoft and other mobile ecosystems that come preloaded with identical baseline apps. And remember that these placement agreements are not exclusive, and Android manufacturers implement their possess apps and apps from other companies as well. And in comparison to Apple – a world’s many essential (mobile) phone association – there are distant fewer Google apps pre-installed on Android phones than Apple apps on iOS devices,” pronounced Lockheimer.

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