Google 'Must Do Better' Over Search Concerns

Google must do more to overcome worries that its search results are unfair to its competitors, the European Commission has said.

The company came up with proposals that it hoped would satisfy a three-year investigation into how it displays and ranks search results.

But Joaquin Almunia, the European Union's competition commissioner, said its ideas were not good enough.

If it does not come back with better ideas, it could face a fine of around $5bn (£3.3bn).

"I concluded that proposals that Google sent to us months ago are not enough to overcome our concerns," said Mr Almunia.

He said a letter had been sent to Google chairman Eric Schmidt asking the firm to "present better proposals".

Google has been accused of unfairly flagging up products or services that are listed via its specialised search tools, such as Google Shopping.

The accusation being that customers are kept within the Google framework and rival search services are discriminated against.

Google Chairman Eric Schmidt has been asked to 'do better'

Competition bosses are concerned that it is also bad for shoppers as products that are potentially better, more relevant or cheaper, may be listed too low in the results.

Other worries centred on how Google manages the ads next to its search results, how it displays content from other websites and how its actions affect advertising on rival networks.

The company had offered to mark out its own promoted links in search results, provide clear links to at least three rival search sites such as Yahoo and Bing, and make it easier for advertisers to move to rival platforms.

But the measures failed to impress the European Commission, with Google's competitors claiming they were "highly unlikely" to boost competition.

Google spokesman Al Verney said its proposal "clearly addresses" the areas of concern. "We continue to work with the commission to settle this case," he said.

If the two sides cannot agree on a solution then the Commission could take formal action against Google, with a potential fine of 10% of revenue.

Mr Almunia said he wants the case resolved by the end of the year.

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