It has been a little over a month since Google (News - Alert) presented the European Commission (EC) with its “concessions,” regarding steps it would take to mollify European regulator and industry antitrust concerns over the company’s use of its search dominance to disadvantage competitors. At that time, the EC gave competitors one month to review Google’s suggestions in a “market test.” The clock was supposed to run out at the end of May. It will not. Given the gravity of what is at stake, the EC surprised nobody by coming out with an extension until the end of June for conclusion of the comment period.   

What is a bit surprising is that EU Competition Commissioner Joaquin Almunia has told the European Parliament's Economics Committee, “We will proceed to analyze the responses and we will most likely ask Google to improve its submissions.” He did not elaborate on what would be “improved.” 

This is not to say that he was totally silent on the subject of what policy makers might be thinking about. Almunia did indicate that the EC could decide to make whatever the final recommendations are for Google to modify its practices binding. As may be remembered from previous items on this subject, there has been concern expressed, particularly by competitors, that concessions without punishments for bad behavior, was insufficient protection. They rightfully noted that without the threat of significant financial harm, because of fast market cycles, those that Google might continue to harm would be long-gone before there was a remedy that would come from mere market oversight.  

One would have thought that this last admission would have shaken investors. Again, as noted in previous articles, Google is subject to fines of well over a billion dollars if it cannot reach an agreement with the European regulators about changing its most egregious practices that the EC has already identified as anticompetitive. At least for the moment, it appears that the fear of this remains remote. Investors seem to accept the notion that the concessions Google has on the table will not cause the company significant financial damage, and making them legally binding is just a minor inconvenience.

 In short, not only has this thus far not perturbed people regarding what might happen with Google in Europe, but there seems to be little fear of the possibility of contagion in the U.S.—where Google has agreed to similar restrictions that do not carry the force of law.

We will check back with you at the end of June for the next installment of this drama.