Google competition case "at key moment", says Commissioner, as details of concessions emerge

In a speech, Joaquin Almunia said that Google's latest offer "more appropriately addresses" the Commission's concerns that the company may have abused its dominant position in the online search market.

Although Almunia said he was not yet able to fully disclose the details of Google's latest proposals, he said that he was "confident" that the case had reached a "key moment". The European Commission will now seek feedback on the proposals from the companies that have accused Google of anticompetitive behaviour, which include Microsoft, Hotwire and Foundem; while Google will have to provide "empirical data" showing the effectiveness of its proposals.

"Following the first market test, I had serious doubts whether it was possible to continue the route towards a commitment decision," Almunia said. "I expressed my opinion to Google and in public."

"Now, with significant improvements on the table, I think we have the possibility to work again and seek to find an effective solution based on a decision under Article 9 of the Antitrust Regulation," he said.

Article 9 allows a company under investigation for alleged anticompetitive practices to make legally binding commitments which will address the Commission's concerns. An Article 9 commitment decision must be made public, and interested parties given a month's 'market test' to comment on its suitability, before it can finally be adopted.

The Commission began its investigation against Google in November 2010, following complaints from specialist search sites including Streetmap, a mapping site, and price comparison site Foundem that Google's own products dominated search results. In May 2012, it reached a preliminary conclusion that the company may have abused its dominant market position in the industry, and called on Google to put forward proposed amendments to its search practices.

Google's business practices may be anticompetitive in four areas, according to the Commission. These include providing preferential treatment to links for its own 'vertical search services', such as Google Shopping and Google News, in comparison to similar services operated by rivals; the potential use of content from rivals' services without authorisation; conditions imposed on publishers preventing them from displaying adverts from Google's competitors on their websites; and contractual restrictions surrounding the use of Google's 'AdWords' service.

In its initial package of concessions, published in April, Google proposed a range of measures based around distinguishing links to its own specialised services from "natural" search results. Websites would also be given the opportunity to opt out of specialised listings, while still appearing as part of general search results. The European Commission requested new concessions in July after "negative feedback" from rivals to these proposals.

In his speech, Almunia said that Google had taken greater account of the need to "cover future developments", such as the growing use of mobile browsers, in its proposals. It had also made "significant improvements" to its solution to the Commission's concerns in relation to vertical searches, making links to competitors' sites more visible and allowing them to display a logo next to the link.

The proposals also include the introduction of a new 'auction' system that would allow competitors to bid for a link based on a specific search query. Google also plans to make it easier for other websites to opt out of having their content used in Google services, such as news listings or product reviews, without having their search listings penalised.

In a statement, FairSearch, the umbrella body that represents the companies challenging Google, said that a "deep and broad market test" was needed before the Commission could rule that the new proposals were effective.

"Until we have seen the details of Google's proposed remedies, it would be irresponsible to comment on their content and potential for correcting the anti-competitive behaviour identified by the European Commission in May 2012," said Thomas Vinje, spokesman and legal counsel for the group.

"However, for FairSearch Europe it is essential that the remedies install the principle of non-discrimination so that Google applies the same rules to its own services as it does to others when it returns and displays search results," he said.