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Even two years after the European Commission’s decision, the situation has not changed in the case of Google Search (shopping)

13. 11. 2020 | Adéla Berková

Heureka, FAVI and other Czech price-comparison sites have joined in an open letter to European Commissioner Vestager


A total of 41 price-comparison sites from 21 countries of the European Union have joined in an open letter to the European Commission concerning the case of Google Shopping. In addition to the Czech Heureka, it was also signed by the German firms LadenZeile and Idealo, Italy’s Trovaprezzi and Sweden’s Prisjakt. They are reacting to the fact that not even two years after the issuing of the Commission’s decision that Google abuses its dominant position in web searches and prefers its Google Shopping price-comparer to others, there has been no change in the search mechanism. This results in higher prices for customers, and could threaten tens of thousands of jobs in the digital economy sector.

Formal complaints about the situation, where Google prefers its own price-comparison service (namely Google Shopping) in searches, began ten years ago. Two years ago, they resulted in a decision from the European Commission imposing a fine and requirement to change the search mechanisms. However, according to the signatories, Google has not changed its mechanism to a degree that would respect the principles of economic competition even two years since the decision was issued.


„The reason we have joined in the appeal is an effort to achieve fair economic competition, and of course the related consumer protection. For consumers may end up paying the higher prices displayed by Google Shopping because of Google’s practices,“ says Tomáš Braverman, CEO of Heureka Group, adding: „But Google’s abuse of its position in product price comparisons is not the end of it. Price comparisons also concern other areas such as accommodation, travel, flights and other services, in which economic competition can be threatened by this approach. Therefore, adhering to the European Commission’s decision is an important precedent.“


„Contrary to consumer interests, Google is skillfully evading the obligations it accepted as a consequence of the European Commission’s investigations,“ explained Pavel Telička, former European Commissioner and Vice Chairman of the European Parliament, adding: „If the EU’s internal digital market is to function, the Commission must force giants to fulfil their obligations and tune the regulatory environment so as to ensure fair economic competition and consumer protection.“


Jan Zajíc, CEO of Favi.cz, added: „Through the setting of its conditions, Google shifts competitors of its Google Shopping service into the role of mere agencies that can display products from certain merchants on Google. This is advantageous for Google, but does not even out the conditions on the market. As a consequence, it makes it even more difficult for competitors to maintain a market position and improve user services.“


The disadvantage for customers is also confirmed by the results of a recently-published study by Grant Thornton. This showed that the prices displayed by Google were in some countries up to 30% higher than the prices for the same products on the websites of competing comparison services. However, less than 5% of all users of the Google Shopping comparison service shown in the search results end up on the website of a competing price-comparison service. „Google thus eliminates its competitors, meaning that the only thing merchants can do is advertise only on Google,“ adds Johannes Kotte, CEO of the German price-comparison service LadenZeile (ShopAlike.cz in the Czech Republic).


In addition to the largest European players, the letter was also signed by the Czech price-comparison services Heureka.cz, FAVI.cz, GLAMI.cz, Srovnáme.cz and Hledejceny.cz.

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