Google In Hot Water Across The Pond
Internet search giant Google Inc (NASDAQ: GOOG) (NASDAQ: GOOG) is suffering through the European Union's digital market overhaul and has emerged as the region's chief target as regulations are tightened.
On Friday, the company was met with a list of demands asking Google to change the way its search results are displayed.
As Google accounts for a large majority of online searches performed throughout Europe, regulators worry that the company is using its size to bully competitors. Specifically, EU regulators have been looking into the company's shopping business after complaints that Google puts its own products at the top of the search results.
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A list of charges has been issued against Google despite the company's repeated denial of wrongdoing. The charges are said to have been filed in 12 EU nations and go back as far as 2008. Now, Google will have around a month to respond to the charges, at which time the company can appeal to regulators with its case.
A Costly Battle
Whether the Google's drama in the EU will stifle some of the company's earnings remains to be seen. With the company under the microscope due to an ongoing anti-competition investigation, every step is being watched. If the allegations against Google are pursued, the company may have a long legal battle ahead. However, legal fees might be the least of the company's worries if it is forced to rework its operations in order to comply with EU regulations.
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