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Google makes proposals to EU on competition concerns
by Staff Writers
Brussels (AFP) July 2, 2012


Google said Monday it had made proposals to EU regulators who have threatened to impose huge fines unless the Internet search giant allays concerns it has abused its dominant market position.

"We have made a proposal to address the four areas the European Commission described as potential concerns," said Google spokesman Al Verney.

The proposals, made in a letter from Google executive chairman Eric Schmidt to EU Competition Commissioner Joaquin Almunia, followed a demand by EU anti-trust officials in May to quickly respond to their concerns.

A Commission spokesman confirmed it had received a letter from Google and anti-trust officials would now analyse the response.

The European Commission launched its antitrust investigation in November 2010, looking into allegations that Google had abused a dominant market position following complaints from rivals.

Almunia said in May that the probe had identified areas of significant concern in Brussels.

They were: "preferential treatment" in the hierarchical presentation of search results; doubts over Google's full respect of copyrights; and "restrictions" written into advertising contracts and the "portability" of advertising across different Internet platforms.

Microsoft-owned Internet portal Ciao was an early complainant and more than a dozen plaintiffs are now attached to the case.

The FairSearch coalition, which includes Microsoft and several airfare comparison websites, said it hoped the letter signals a change by Google.

"We hope the proposals reflect a greater willingness to end Google's anti-competitive behaviour than has its consistent rejection of the concerns that Mr. Almunia identified after collecting evidence for nearly two years," said Thomas Vinje, EU counsel to the FairSearch coalition.

If satisfied with Google's response, the Commission could close this investigation.

Otherwise it could possibly push forward the case to the next stage with a formal statement of objections.

Fines eventually imposed under this type of probe could reach up to 10 percent of a company's sales -- meaning record EU penalties.

Even if this case is closed it would not end all of Google's troubles with EU competition authorities.

It is also facing complaints from travel websites such as Expedia and concerns about Google's Android mobile phone and tablet operating system.

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Google touts economic impact in US of ad efforts
San Francisco (AFP) July 2, 2012 - Google said Monday its search and advertising operations generated $80 billion for 1.8 million US businesses in 2011.

The annual report from the Internet search giant comes as it faces a US government probe of lucrative search and advertising business, in which it holds an estimated 65 percent market share.

"It's a fact that the Internet is creating jobs and helping the American economy grow. And we're proud to be a part of that process," Margo Georgiadis, vice president of Americas sales at Google, said in a blog post.

"The growth of our Internet use has naturally helped the ecommerce industry to expand rapidly over the past decade. But the web is also positively impacting brick-and-mortar businesses."

Google said its estimate of economic impact is conservative, and is only one portion of its overall business impact.

"Our estimate is comprised of a limited part of our business and relies on conservative calculations," Google said in a page explaining its report.

"For example, it doesn't include the economic benefits of search results for consumers, the impact of our hiring or employees, or the impact of products like Google Maps or YouTube. We hope to be able to include these sources in future reports."

Google said businesses generally make an average of $2 in revenue for every $1 they spend on AdWords, the sponsored links next to search results.

According to some reports, Google could face scrutiny by US regulators for abusing its dominant position in search and advertising.

EU officials have also begun a probe, and have asked Google for "remedies" to satisfy Brussels.



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Investors warm to Facebook after IPO flop
Washington (AFP) June 30, 2012
After a dire stock market debut, Facebook has clawed back a large chunk of its losses as investors look past the flubbed initial public offering and gradually warm to the leading social network. Facebook shares were offered in May at $38, and after an opening hours jump slid over the next two weeks to as low as $25.52 on June 6. But since then the stock has risen more than 20 percent to Frid ... read more


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