| 13.3°C Dublin

Google faces breakup call as EU political patience wanes


Google logo

Google logo


Google logo

A European Parliament bid for legislation splitting up Google may send a message that's too loud to ignore as EU antitrust regulators review a possible settlement with the owner of the world's largest search engine.

Google, already grappling with privacy and competition issues, risks another EU headache as some lawmakers seek to follow a successful attack on bankers' bonuses with measures to break up the search giant.

"This represents a new escalation for Google," said Greg Sterling, vice president of strategy and insights for the Local Search Association. "There's some question about whether breaking up Google would actually happen - however it does indicate the depth and intensity of the critical antagonism and challenge that Google confronts."

While the parliament doesn't have the authority to compel regulators to draft legislation or alter their antitrust probe, it can amend proposals by the European Commission. Lawmakers used this procedure to shoehorn extra curbs on banker bonuses into legislation toughening capital requirements in the wake of the financial crisis.

The bonus measures prompted outrage from UK Chancellor of the Exchequer George Osborne, who only abandoned his legal fight against the rules last week after an adviser to the EU's top court said the rules barring bonuses more than twice fixed pay were legal.

Attacking Google may be more difficult for the parliament than the bonus rules, according to lawyers. That's because the assembly, which meets in Brussels as well as Strasbourg, France, has fewer powers in the competition field.

Google, which has more than 90pc of the search market in many European countries, is being targeted by a group of parliamentarians who say the commission should consider legislation if it can't wrap up a lengthy antitrust probe into the company. Al Verney, a spokesman for Google, declined to comment on the lawmakers' draft resolutions.

Indo Business