EC extends deadline in Google antitrust case

Google has been given two weeks longer to respond to a European Commission antitrust charge that the search engine giant 'abused its dominant position' to promote its online shopping services and mobile phone software.
Under microscope of Indian competition regulator

The Google legal team, led by longstanding chief legal officer David Drummond and GC Kent Walker, has until August 31st to respond an EC Statement of Objections issued in April. The original deadline of August 17th has passed, with Ricardo Cardoso, a spokesman for the Brussels based monopoly watchdog, saying 'it has granted an extension allowing Google to fully exercise its rights of defense'.

Investigation

The investigation focuses on claims that Google favours its own shopping comparison product on consumer searches in the EU. In a separate probe, the regulator is looking at claims that Google’s android software breached the law 'by hindering the development and market access of rival mobile operating systems, applications and services to the detriment of consumers and developers of innovative services and products'. The EC is threatening Google with an astronomic fine of around US$6.6bn should the tech firm fall foul of the competition investigation.

Separation

David Drummond is among a select group of Google directors, including founder Larry Page, to lead Alphabet, a new holding company set up on August 11th to take over Google’s NASDAQ stock exchange listing, allowing clearer separation between its core advertising business and more speculative ventures. Silicon Valley projects now separate from Google under the Alphabet umbrella include private equity house Google Ventures and health startup Calico. Warren Buffett’s investment company Berkshire Hathaway is cited as an inspiration behind the change in ownership structure. Cardosa hit back at suggestions that the Google restructuring could aid its legal battle with the EC competition authorities. 'A company does not insulate itself from a competition investigation through a change in corporate structure,'  the spokesman told the Global Legal Post. Sources: European Comission; Dow Jones Newswires

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