CEO’s price comparators in a letter of fire: Google still violates competition rules

In the course of 2017, Google was fined 2.42 billion euros. The company had given priority to its own price comparator over that of its competitors and this was not allowed. Google had to make some adjustments, and it did. But now several competitors claim that Google still does not comply with the rules.

Google’s new mechanism is based on auction principles. Competitors can now bid against Google Shopping for a higher place in the search results. However, according to the 14 platforms that complained to EU Commissioner Margrethe Vestager, this is not an appropriate or effective mechanism.

Abuse of power by Google

A year ago, the European Union ruled that Google did not comply with certain competition rules. It unfairly favoured its own services. That had to change quickly. But now the ceos of fourteen platforms, including Idealo and PriceSpy, complain that the damage to competition, consumers and innovation resulting from Google’s illegal actions continues.

Where competitors have to spend most of their turnover on bidding, Google Shopping costs nothing at all. The bids of Google Shopping are meaningless, because they go from one pocket of Google to another. The harsh reality is that this bidding system fundamentally contradicts the concept of price comparators (or any other form of vertical search), as it remains difficult for companies to bid against Google Shopping.

The ceos therefore ask the EU Commissioner to take other measures. Google has to follow other principles that are more in line with the previous judgment, as far as the managers of the fourteen services are concerned. In addition to Idealo and PriceSpy, the CEOs of Archeter-moins-cher.com, Comparado, Foundem, KuantoKusta, LionsHome, PriceRunner, RedBrain.com, Solute, StyleLounge, Compare, Visual Meta and Yroo also complained.