Google Gets More Time to Address EU Investigation Concerns

Google has been granted further leeway in an ongoing investigation by the European Union, which may have an effect on the way Google operates throughout Europe in future. The Commission confirmed to Google that it would have additional time to respond to the European Commission's concerns as part of the inquiry, indicating that the inquiry is ongoing, but not necessarily close to being resolved immediately.

The focus of the investigation is on the competitive problem, with the regulators looking at whether Google used its dominant position in the market adversely to its competitors and prevented them from competing fairly. The EU is the most aggressive regulator of any major region in the world towards holding big tech companies to account, so Google has found itself under the scrutiny of regulators in Europe on several occasions over the years.

Providing additional time for companies under review to respond and provide evidence to regulators is an expected procedural step in most complex investigations. The ability for the company being investigated to present a more complete case to the regulator could ultimately help it to mitigate the risk of being slapped with significant fines by the EU like those that have occurred in previous investigations of other companies.

The seriousness of these potential penalties should not be overlooked. The EU has the ability to impose substantial fines and order significant changes to the company's business activities if it determines that the company has violated competition law. There have been multiple cases against Google where fines have totaled in excess of €1 billion, so it would be foolish for Google to treat the process lightly.

Finally, even though there is an extension to the investigative period, this extension by no means indicates that the investigation is slowing down. The Commission has made it clear that they will complete an investigation on the merits of the case, regardless of how long the investigative phase lasts or how vigorously the company being investigated tries to fight the investigation.
For the time being, Google will be able to continue developing its response. The ongoing question of how the European Union regulates digital competition is still one of the most significant international regulatory storylines, with Google’s case being only one aspect of this large and continuing struggle.