Google and EU agree to settle search row

Google’s three-year antitrust battle in Europe is set to end in settlement after the European Commission took a positive view of its latest offer to give its rivals more prominence in search results.

Following two-years of see-saw negotiations and three separate settlement proposals, the European Commission gave its provisional blessing to final terms that places legal curbs on how Google presents its search page. Google’s rivals panned earlier offers as inadequate and “worse than nothing.” The latest revisions leave those terms largely unchanged, but require Google to give more space and visibility to mandatory links to alternative search services, such as for shopping or restaurants. Both Google and Joaquín Almunia, the EU competition chief, see this as the closing chapter in protracted settlement talks that were on the brink of collapse at various points, with threats of formal charges unless Google’s offer was improved. The pact remains subject to a final approval process. To the annoyance of Google rivals, this will not include a formal “market test” of the third offer. The 18 groups that filed complaints in the case will be consulted about the final terms when the commission informs them of its intention to reject the case.

The five-year pledge to the European Commission lets Google add new services or alter its search page as long as it grants three links to rival services next to its own specialized search results such as Google Shopping. Competitors will pay at least 3 euro cents (4 U.S. cents) to bid for a spot in a shaded box on some of Google’s search pages.