[HN Gopher] Google loses EU court battle over EUR2.4B antitrust ...
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       Google loses EU court battle over EUR2.4B antitrust fine
        
       Author : JumpCrisscross
       Score  : 148 points
       Date   : 2024-09-10 16:46 UTC (6 hours ago)
        
 (HTM) web link (www.politico.eu)
 (TXT) w3m dump (www.politico.eu)
        
       | eldaisfish wrote:
       | The relevant bit of the article:
       | 
       | >The Court of Justice said Google's practice of favoring its own
       | shopping search results over rival services "was discriminatory."
       | The ruling can't be appealed.
       | 
       | >Judges said that EU law forbids behavior that prevents "the
       | maintenance or growth of competition in a market in which the
       | degree of competition is already weakened, precisely because of
       | the presence of one or more undertakings in a dominant position."
        
         | diggan wrote:
         | Gonna be interesting to see if Amazon also gets hit by this
         | very same thing as they seem to push their "Amazon Basics"
         | brand above competitors too in their "market place".
        
           | CharlieDigital wrote:
           | Might be a distinction here because Google doesn't actually
           | sell the products whereas Amazon is the actual retailer.
           | Google is promoting their link to the product -- potentially
           | even over the exact same retailer's direct link -- to take a
           | cut.
        
           | nabla9 wrote:
           | EU already hit Amazon in 2018 and Amazon settled in 2022 to
           | stop pushing their own products above competitors using
           | unfair tactics.
           | 
           | (those rules only only apply to online shoppers inside EU)
           | 
           | In the settlement Amazon is put into a probation for 5 years.
           | 
           | https://ec.europa.eu/commission/presscorner/detail/en/ip_22_.
           | ..
           | 
           | ---
           | 
           | With respect to the marketplace seller data, Amazon commits
           | to refrain from using non-public data relating to, or derived
           | from, the activities of independent sellers on its
           | marketplace, for its retail business that competes with those
           | sellers. This would apply to both Amazon's automated tools
           | and employees that could cross-use the data from Amazon
           | Marketplace, for the purposes of retail decisions. The
           | relevant data would cover both individual and aggregate data,
           | such as sales terms, revenues, shipments, inventory related
           | information, consumer visit data or seller performance on the
           | platform. Amazon commits not to use such data for the
           | purposes of selling branded goods as well as its private
           | label products.
           | 
           | In relation to the Buy Box Amazon commits:
           | 
           | - to apply equal treatment to all sellers when ranking their
           | offers for the purposes of the selection of the winner of the
           | Buy Box;
           | 
           | - and in addition, to display a second competing offer to the
           | Buy Box winner if there is a second offer that is
           | sufficiently differentiated from the first one on price
           | and/or delivery. Both offers will display the same
           | descriptive information and provide for the same purchasing
           | experience. This will enhance consumer choice.
           | 
           | Lastly, regarding Prime Amazon commits:
           | 
           | - to set non-discriminatory conditions and criteria for the
           | qualification of marketplace sellers and offers to Prime;
           | 
           | - to allow Prime sellers to freely choose any carrier for
           | their logistics and delivery services and negotiate terms
           | directly with the carrier of their choice;
           | 
           | - not to use any information obtained through Prime about the
           | terms and performance of third-party carriers, for its own
           | logistics services. This is to ensure that carriers' data is
           | not flowing directly to Amazon's competing logistics
           | services.
           | 
           | The commitments would remain in force for five years. Their
           | implementation would be monitored by a monitoring trustee who
           | would report regularly to the Commission.
        
             | diggan wrote:
             | > Amazon settled in 2022 to stop pushing their own products
             | above competitors
             | 
             | Eh, I hope they re-investigate then because it still
             | happens in September 2024, even inside EU.
        
               | sitkack wrote:
               | If you can document and publish, that would be ideal.
        
               | diggan wrote:
               | Just one quick example from Spanish Amazon:
               | https://i.imgur.com/XnR6BrF.png
               | 
               | Maybe a better example where the search is for "e-book
               | color" and the listing for the Paperwhite doesn't match
               | either "e-book" or "color", so it's not ranking high
               | because it's matching the search terms well with the
               | titles but seemingly because of something else:
               | https://i.imgur.com/BoUjPPv.png
        
               | nickff wrote:
               | That item is the lowest cost of the options depicted, and
               | has more reviews (which are proportional to sales) than
               | the rest combined. I think most algorithms would put it
               | on top.
        
               | ethbr1 wrote:
               | Ah yes, the "ignore what I asked for, push me what sells
               | the best" search algorithms.
        
               | diggan wrote:
               | The results for the search "funda" are all smartphone or
               | tablet covers, or covers for laptop. Except for that one
               | Amazon Basics product which is a cover/protector for
               | hard-drives.
               | 
               | That doesn't seem at least a tiny bit odd to you?
        
               | nickff wrote:
               | It has a lot of reviews, and the word "funda" in the
               | title; makes sense to me that it would be at the top.
        
               | diggan wrote:
               | Below its ranking (scrolling, not visible in the
               | screenshot) are products with exact same score + more
               | reviews + "funda" in the title. Shouldn't those, by your
               | understanding, rank above the Amazon Basic product then?
        
               | nickff wrote:
               | Maybe; depending on their age, the content of the product
               | page (videos, comparisons, etc.), delivery time, and the
               | rate at which those who see the listing purchase it
               | (after searching funda). I am guessing that Amazon uses
               | some sort of Bayesian+ algorithm to figure out what to
               | list.
        
               | vel0city wrote:
               | Why wouldn't a Paperwhite return with "e-book"? And given
               | the results it's way more reviewed and probably way more
               | popular than the other listings there.
               | 
               | And you searched what could be translated to "sleeve" or
               | "cover". The hard drive sleeve has way more reviews and
               | engagement than the rest, by a massive margin.
               | 
               | I hate Amazon search for many reasons, but this seems to
               | be a reach of examples. Show me an example where the
               | alternatives have equal review counts but are pushed way
               | below the Amazon listings or way more specifically
               | excluding terms. If you had searched for an iPhone case
               | and it returned a hard drive sleeve I'd think there was
               | something funny going on, but not with these examples.
        
               | diggan wrote:
               | > Why wouldn't a Paperwhite return with "e-book"?
               | 
               | The search is "e-book color", if a product doesn't
               | mention "color" or similar in it's title, description or
               | metadata, I don't expect it to show up. No other black
               | and white e-readers seems to show up, only Paperwhite is
               | the black&white reader that shows up.
               | 
               | > And you searched what could be translated to "sleeve"
               | or "cover".
               | 
               | The search engine seems to think I'm searching for either
               | a laptop cover or smartphone/tablet cover, as every
               | single result on the first page are in those categories.
               | Except, for the Amazon Basics one, which coincidentally
               | also ranks highest.
               | 
               | I'm not putting these out there as "This is definitely
               | proof Amazon is fucking with the search rankings" but
               | more like "These results don't really seem to match what
               | I expect or what I get at other similar websites".
        
               | vel0city wrote:
               | > Paperwhite doesn't match either "e-book" or "color"
               | 
               | > either "e-book" or "color"
               | 
               | A Paperwhite most definitely matches "e-book". _Very_
               | strongly.
               | 
               | Most fuzzy searches have multiple weighting parameters in
               | the algo. You're right, it doesn't match "color" very
               | strongly, but the fact it has >7k reviews and "5+ million
               | sold last month" compared to 31 reviews its match for
               | "e-book" probably has a pretty _massive_ weighting. It 's
               | probably 1,000x stronger in its natural weight in terms
               | of overall sales and engagement to anything else related
               | to "e-book". I mean, its 400, 50, 50, and an undisclosed
               | amount sold last month compared to _five million_.
        
               | gamblor956 wrote:
               | Paperwhites come in multiple colors...
               | 
               | "color e-book" does not return a b&w Paperwhite in the
               | first page, which disproves your assertion.
        
             | blackeyeblitzar wrote:
             | I feel like companies like Amazon are large enough that
             | they will find other hidden ways to do the same unethical
             | things. Their size is fundamentally a problem.
        
           | tzs wrote:
           | How about non-online stores? In the US many major chain
           | stores have their own brands. For example in grocery stores
           | Safeway has their Signature Select brand, and Walmart has
           | Great Value. In electronics Best Buy has Insignia, and
           | Walmart has Onn.
           | 
           | Do major EU retailers do the same?
        
       | ChrisArchitect wrote:
       | [dupe]
       | 
       | More discussion: https://news.ycombinator.com/item?id=41499714
        
         | nabla9 wrote:
         | Not a dupe.
         | 
         | You are linking to tax evasion case. This is antitrust.
        
           | ethbr1 wrote:
           | It's easy to lose track of the number of times Google has
           | been convicted of breaking the law.
        
             | diggan wrote:
             | Good thing there is a Wikipedia page helping us keep track,
             | with only 3 sections so far :) https://en.wikipedia.org/wik
             | i/Antitrust_cases_against_Google...
             | 
             | Edit: My bad, the above page is just Antitrust cases made
             | by the EU against Google. All the litigation sorrounding
             | Google has it's own Wikipedia category (!!) as it's so much
             | at this point:
             | https://en.wikipedia.org/wiki/Category:Google_litigation
        
               | hinkley wrote:
               | When the list of cases against you gets alphabetized, you
               | might have a problem.
               | 
               | > The following 35 pages are in this category
        
           | ChrisArchitect wrote:
           | The articles and discussions are combined. There are already
           | a number of threads. It's a dupe.
        
       | lazyeye wrote:
       | Good. Google is not your friend.
        
       | sdwrj wrote:
       | Yet another reason to stop using Google services.
        
         | elevatedastalt wrote:
         | More like another reason to stop doing business in the EU.
        
           | bulbosaur123 wrote:
           | Why not both?
        
       | Trias11 wrote:
       | Government racket. Expected by large corps. Probably some
       | handshakes and kickbacks are happening behind the closed doors.
        
         | ethbr1 wrote:
         | Handshakes and kickbacks would be what would happen if they
         | hadn't been publicly fined.
         | 
         | If anything, this is a counterexample to your comment.
        
       | blackeyeblitzar wrote:
       | I am very much against the type of regulations in the EU (or
       | places like Brazil) that hurt freedom of speech or privacy of
       | chats or whatever else. But I do support regulations to break up
       | monopolies or remove other anti competitive barriers. We have too
       | many large corporations that are so powerful that they are like
       | governments. They distort our market but also our speech and
       | politics and all that. Choice and competition is important. I
       | think anti trust actions against Google, Amazon, Microsoft,
       | Apple, Walmart, financial companies (JP Morgan Chase or
       | Visa/Mastercard), medical industries, and others needs to go much
       | further. And it can't stop at the EU.
        
         | Ninjinka wrote:
         | Alternate take: More concerning is the power of government.
         | "They distort our market but also our speech and politics and
         | all that."
        
           | idle_zealot wrote:
           | Powerful entities influence the world. The difference is that
           | the government (in the EU) is ostensibly democratic and
           | private companies are unaccountable optimization engines.
        
             | VirusNewbie wrote:
             | No, the difference is companies have competition, and are
             | not allowed to use violence to exert their will.
        
               | hungie wrote:
               | Ha.
               | 
               | Companies collude to eliminate competition all the time.
               | Or use tactics that make competition impossible.
               | 
               | And don't use violence? Give me a break. Even small scale
               | companies like Wizards of the Coast sent the fucking
               | Pinkertons after someone for possessing a magic card. You
               | think Amazon is out here existing violence free? You
               | think Nestle's suppliers are making chocolate without any
               | violence.
               | 
               | Take off the rose colored glasses.
        
               | blackeyeblitzar wrote:
               | Violence is also too high a bar. A lot of bad things
               | aren't violent but still damaging. It is more about the
               | use of power.
        
               | nicce wrote:
               | The high competition is usually also the root of the
               | evil, since they need to do things that other would not
               | to get an advantage. Like using child labor somewhere.
               | Create a solution for non-existent problem but then lobby
               | some laws which will create this problem. There is no
               | moral in public companies.
        
               | renjimen wrote:
               | Ever heard of the East India Company?
               | 
               | Or a modern day example: https://ccrjustice.org/bowoto-v-
               | chevron-murder-and-torture-n...
        
               | VirusNewbie wrote:
               | uhhh, in your example, a subsidiary of chevron paid _the
               | government_ to attack protestors. I 'm sure there are
               | small examples of companies actually conducting violence,
               | but you should feel bad about yourself in that you
               | couldn't even muster the effort to find something that
               | disproved my point.
        
               | hnbad wrote:
               | If you're suggesting the government should not be able to
               | exert violence because corporations aren't, I'm listening
               | but I suspect you haven't thought this through.
        
               | Rinzler89 wrote:
               | _> No, the difference is companies have competition_
               | 
               | How did that competition between private companies work
               | out for US hath system? Are Americans getting better bang
               | for the buck? Are they getting faster internet at home
               | due to competition between ISPs? Are Americans getting
               | more paid vacation days due to the private market
               | competition between employers? Why didn't competition
               | between auto makers result in more efficient and less
               | polluting engines until the EPA and EU forced them in the
               | 80's? Did competition between food manufactures got them
               | to eliminate lead and arsenic from food or was it
               | government regulation that did it?
               | 
               | Competition existing doesn't automagically prevent or fix
               | monopolies, duopolies, price fixing and other anti-
               | competitive behavior from private entities who have the
               | power to shape the market in their favor. Do you know why
               | all those things are illegal even in the US? Because they
               | work. If it wouldn't work it wouldn't have been made
               | illegal. Private entities can much more easily collide to
               | screw over consumers than consumers can collectively
               | unite to do anything about it themselves. That's why
               | governments and regulations exist.
        
               | rurp wrote:
               | Elected politicians compete intensely with each other.
               | Polling, focus groups, and pandering are common in
               | democratic countries because people running for office
               | want to do things that make voters like them. The system
               | is far from perfect but you seem to be arguing that the
               | government is free to use violence however it wants
               | without consequence which is not at all realistic.
        
             | carlosjobim wrote:
             | Not everything is democratic about the EU, since the top
             | representatives are not elected by the people. Just like
             | the United Nations is not a democratic organization. The EU
             | president is not elected by popular vote, for example. She
             | is appointed by the parliament, similar to how kings in the
             | past were appointed by a council of lords.
             | 
             | Edit: Corrected my error.
        
               | awiesenhofer wrote:
               | > She is appointed by the parliament, similar to how
               | kings in the past were appointed by a council of lords.
               | 
               | Do you ... not know what a parliament is?
        
               | ahoka wrote:
               | MPs are directly elected (you can literally vote for a
               | single person in an EU election), they are not some kind
               | of noblemen.
        
           | blackeyeblitzar wrote:
           | I guess I agree with both being a problem. Maybe the way I
           | would put it is that once a company becomes large enough it
           | is a lot like a government. For example, if a a few tech
           | companies ban your speech, you effectively don't have a
           | useful freedom of expression. Being able to yell on a street
           | corner is not a good substitute if you are censored online.
        
             | jsbg wrote:
             | A government is by definition a monopoly. No company can
             | become large enough to be like a government unless it has
             | government backing. E.g. Walmart was feared to be becoming
             | a monopoly by running smaller shops out of business and yet
             | Amazon was still able to compete. Eventually someone else
             | will outcompete both, as long as the government doesn't
             | step in to protect them.
        
         | baxtr wrote:
         | Google is a monopoly. But this is simply because their product
         | was/is so much better than the rest. Anyone can access bing
         | whenever they want but not many people care.
        
           | blackeyeblitzar wrote:
           | There are network effects and other feedback loops that make
           | competition not possible. For example, by simply having fewer
           | users, you get less information to train your algorithms. But
           | in Google's case, they also have the network effect of
           | running an advertising platform. This platform is hard to
           | compete against in itself. And it provides funding that would
           | otherwise potentially go to other players so that they can
           | invest in search quality. Just a thought. I have not thought
           | deeply about this so I would welcome other opinions.
        
           | kuschku wrote:
           | The best result for the consumer would obviously be the best
           | maps integrated into the best search. That may end up apple
           | maps or here wego with google search.
           | 
           | It'd be perfectly fine for Google to allow choosing your own
           | maps provider, or just using geo:// URIs so whichever maps
           | app you've got installed handles location links.
           | 
           | Through laws and treaties we've given the EU the duty to
           | enforce this.
        
           | johannes1234321 wrote:
           | Yes anybody could use Bing, but they won't. That leads to big
           | revenues for Google. Question now is, what Google does with
           | those revenues. Do they invest in other markets where they
           | otherwise can't compete to drive competitors out of the
           | market? - Then they abuse the power they got.
        
             | carlosjobim wrote:
             | That is clearly not an abuse of power, unless we have to
             | adopt the ideology that anything a big company does with
             | their profit is an abuse of power. Would you be happier if
             | all profit went to shareholders and none to investing?
        
           | julienfr112 wrote:
           | The question is not the monopoly by itself, it's to conquer
           | other market by abusing it's power. If you own search and
           | mobile os, without regulation, what could you prevent to own
           | mobile service, then fiber, then delivery then car, then
           | train, then whatever ?
        
             | baxtr wrote:
             | Who built ChatGPT again?
        
               | ethbr1 wrote:
               | Microsoft's money?
        
               | baxtr wrote:
               | Exactly. It was not Google even though they had the
               | monopoly on data.
        
               | manuelmoreale wrote:
               | With initial research inputs by Google and their work on
               | Transformer if I'm not mistaken.
        
           | pessimizer wrote:
           | Google was better for the five minutes that pagerank lasted.
           | The only thing it's maintained since is being _no worse_ than
           | the competitors, while being the default. In order to become
           | and remain the default they use the profit they make from
           | their old purchase of doubleclick, since ads are what make
           | Google money, in order to bribe and buy competitors.
           | 
           | There's no part of this that is good. Other than as a huge
           | monopoly, they can afford to be huge on R&D, just like Bell.
           | They still fail to make money on anything but ads, though, so
           | it's not turning out as well as Bell.
        
             | adamc wrote:
             | There's all sorts of anecdotal evidence that google
             | searches have gotten steadily worse, and google has stopped
             | supporting parts of its search "API" that mitigated this.
             | So they've been the market leader but haven't continued to
             | improve search in any noticeable way.
             | 
             | Sure, other search engines can theoretically compete, but
             | it is an enormous mountain to get enough data to be
             | competitive... and just being "as good" is not enough to
             | get people to switch. So without regulation, google is
             | going to exploit a captive market.
        
           | iteratethis wrote:
           | Yes, it's so much better that they pay Apple billions each
           | year to make it the default search engine.
        
             | baxtr wrote:
             | This showcases Apple's monopoly not Google's.
             | 
             | I believe even if Apple had chosen Bing instead most people
             | would have changed the search engine back to Google.
             | 
             | Just like with maps. Most people I know use Google maps on
             | their iPhones even though it has been replaced as default
             | map app a long time ago.
        
               | iteratethis wrote:
               | "I believe even if Apple had chosen Bing instead most
               | people would have changed the search engine back to
               | Google."
               | 
               | If that is true then I guess Google really has too much
               | money.
        
       | cranium wrote:
       | Noob question but who will get the fine money in the end? At
       | least in the Apple case (also on HN frontpage) it's clearly taxes
       | owed to Ireland.
        
         | creesch wrote:
         | > Fines imposed on undertakings found in breach of EU antitrust
         | rules are paid into the general EU budget. This money is not
         | earmarked for particular expenses, but Member States'
         | contributions to the EU budget for the following year are
         | reduced accordingly.
         | 
         | https://competition-policy.ec.europa.eu/index/fines_en
         | 
         | Also, because there are always people in these discussions
         | commenting things they haven't given a single thought to. No,
         | these fines do _not_ finance the EU.
         | 
         | The EU budget is around EUR160 billion to EUR180 billion each
         | year. Roughly 1% of the EU GDP, contributed by member states.
         | 
         | Fines this large are the exception, not the rule. So fines do
         | make up a very small portion of the overall budget.
        
           | paulddraper wrote:
           | This is a single fine for a single company
        
             | creesch wrote:
             | So?
        
             | nine_k wrote:
             | There are very few companies of this magnitude, and even
             | fewer fines of this scale.
        
       | chankstein38 wrote:
       | Not really knowing how any of this works, could Google just stop
       | listing other merchant's stuff and be in compliance?
       | 
       | Obviously it'd take a hit on search value but I don't really
       | understand how rating their stuff higher is any different than
       | having a product page in the technical sense except that they
       | also list other people's products.
       | 
       | So I'm not sure if this is due to their size and adoption or if
       | it's because they are a search company that lists everyone's
       | products.
       | 
       | I really have no idea about this and no real opinion, I am just
       | wondering if hiding other people's results would solve this.
        
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