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 There are few incentives left for either party to reach a deal in a
six-year dispute that could set a precedent for Google searches for
hotels, flights and other services and tests regulators' ability to
ensure diversity on the Web.
Alphabet Inc's Google, which was hit by a second EU antitrust charge
this month for using its dominant Android mobile operating system to
squeeze out rivals, shows little sign of backing down after years of
wrangling with European authorities.
Several people familiar with the matter told Reuters that after
three failed compromise attempts since 2010, Google has no plan to
try to settle allegations that its Web search results favor its own
shopping service, unless the EU watchdog changes its stance.
Such a change of heart appears unlikely, with European Competition
Commissioner Margrethe Vestager -- a Dane whose team is leading the
Google investigation -- showing little interest in reaching a
settlement where there is no finding of wrongdoing or a fine against
the company, other people said.
Underpinning Vestager's tough approach, and the Commission's case,
are scores of complaints from companies, big and small, on both
sides of the Atlantic.
MICROSOFT'S SHADOW
For Google, which has denied any wrongdoing, the stakes are high.
Some rivals are convinced that any fine is effectively a cost of
doing business and it has more to gain in profit from its existing
business model than conceding to complaints.
Google and the European Commission both declined to comment.
"From a pure profitability perspective, it is better off dragging
out the competition case, continuing its practices for as long as
possible, and ultimately paying a fine that will be smaller than the
profits it generates by continuing the conduct," Thomas Vinje, a
lawyer who advises several of Google's competitors, told Reuters.
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However, some sources said they see last week's low-key pact with
arch-rival Microsoft to withdraw all regulatory complaints against
each other as a signal that Google might in time choose to strike a
deal with Brussels.
By doing so it would avoid a repeat of Microsoft's damaging fight
with the European Commission and by settling at least its dispute
with the EU over Internet shopping might also head off possible
actions by other regulators.
To date, Google has a mixed record in taking on regulators globally,
winning some battles and losing others.
However, Microsoft offers a salutary lesson to those who want to
take on the Commission, Ioannis Kokkoris, a law professor at Queen
Mary University of London, said.
Microsoft ended up with fines of more than 2.2 billion euros ($2.5
billion) after a decade-long battle with the Commission.
"You are entering a long battle, an expensive battle. And if you go
to court, the outcome would not necessarily be better," Kokkoris
said.
($1 = 0.8810 euros)
(Editing by Alexander Smith)
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