Why Tech Group That Includes Microsoft Corporation (MSFT) Is against EU Breakup Of Google Inc (GOOG)?
Google Inc (NASDAQ:GOOG)‘s dominant position is being challenged in Europe, where a draft motion is submitted in the European Parliament demanding separation of Google’s search engine from its other offerings. Though the European Parliament has no such power in its hands to do so, the draft motion comes amid pressure to give relief to Google’s struggling competitors in the region.
The case of separating Google businesses comes on the backdrop of four-year long investigation by the European Commission over allegation that the search engine giant places its products on a priority to rival’s products. In February, Google convinced the European regulators that it will show its services at par with other rival companies, but will not pay a penalty or change its structure.
Vulnerability Of Other Tech Giants
Meanwhile, in response to the resolution, CCIA, an international non-profit membership organization, has opened up against the motion. The tech association said, “This motion — and the politics surrounding the Google competition case in general — has wider implications and threatens the entire Internet economy. Furthermore, it also harms the European economy by limiting its ability to fully harness and benefit from digital innovation and creative enterprises.” It is noteworthy that alongside Google, some other prominent members of CCIA include Microsoft (NASDAQ:MSFT), Facebook (NASDAQ:FB) and Samsung. The statement by CCIA echoes the fears of technological companies that prioritize freedom in their products, if the motion wins in the Parliament.
Google Inc (NASDAQ:GOOGL) is not alone to be troubled by antitrust concerns, Microsoft Corporation (NASDAQ:MSFT) has had its share of similar problems too. The software giant went through the decision of whether to keep its Windows operating system and Internet Explorer as one in 90’s era. However, the U.S. government decided to keep the two as one eventually. So you can see why Microsoft may relate.
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