European Union‘s Charges against Google will be a big mistake, say Analysts
According to reports, regulators of European Union could file formal charges against Internet company Google for alleged anti-competitive behavior. The charges could be filed on Wednesday, but as per some analysts, such a move could be a big mistake.
On Tuesday, some media reports stated that Margrethe Vestager, Competition Commissioner of European Union, was poised to make statement about Google. The company has been the subject of an antitrust investigation in the region. Critics of the Internet giant said that the company has been enjoying its leading position in the search engine industry. As per the European Commission, the company currently holds more than 90% of the market share.
As per reports of the Financial Times and The New York Times, the European Union would charge the company for abusing its current market position. The company, which has headquarters in Mountain View, California, will face fine of about $6.6 billion if antitrust charges are proven. It could also force the company to reshape its position in European region. On Tuesday, shares of Google fell more than 1.5%.
As per an internal memo obtained by Re/code, Google said that news of charges was very disappointing. The company also stated that it had a very strong case to appeal any decision. Trip Chowdhry, managing director of Global Equities Research, said, "European Union charges against the search engine behemoth would be a protectionist move and a big mistake. I think the European Union is totally clueless. They're going to destroy the company".
When a European Commission spokesman was asked about the charges, the spokesperson declined to comment. The spokesman did not tell whether Vestager would make a statement about the tech giant after the weekly meeting of all 28 European Union commissioners on Wednesday morning.