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CASE AT.39740 Google Search (Shopping) EUROPEAN COMMISSION Competition CASE AT.39740 Google Search (Shopping) ANTITRUST PROCEDURE Council Regulation (EC) 1/2003 Article 7 Regulation (EC) 1/2003 Date: 27/06/2017 This text is made available for information purposes only. A summary of this decision is published in all EU languages in the Official Journal of the European Union. Parts of this text have been edited to ensure that confidential information/personal data is not disclosed. Those parts are shown as […] or replaced by a non-confidential summary, or ranges, in square brackets. EUROPEAN COMMISSION Brussels, 27.6.2017 C(2017) 4444 final COMMISSION DECISION of 27.6.2017 relating to proceedings under Article 102 of the Treaty on the Functioning of the European Union and Article 54 of the Agreement on the European Economic Area (AT.39740 - Google Search (Shopping)) (Only the English text is authentic) EN EN TABLE OF CONTENTS 1. Introduction .................................................................................................................. 7 2. Google's business activities .......................................................................................... 7 2.1. The undertaking ........................................................................................................... 7 2.2. Overview of Google's business activities ..................................................................... 8 2.2.1. Google Search .............................................................................................................. 8 2.2.2. Generic search results .................................................................................................. 8 2.2.3. Online search advertising results ................................................................................. 9 2.2.4. Specialised search results ........................................................................................... 10 2.2.5. Google's comparison shopping service ...................................................................... 11 2.2.6. Other Google products and services .......................................................................... 13 3. Procedure .................................................................................................................... 13 4. Google's allegations that the Commission's investigation suffers from procedural errors .......................................................................................................................... 22 4.1. The Commission's alleged failure to assess the evidence properly ........................... 23 4.2. The Commission's alleged failure to explain its preliminary conclusions properly .. 23 4.3. The Commission's alleged failure to provide adequate access to minutes of meetings with third parties ........................................................................................................ 24 4.4. The Commission's alleged failure to explain adequately why it reverted to the Article 7 procedure ................................................................................................................. 25 4.5. The Commission's alleged failure to provide sufficient information regarding the envisaged remedies .................................................................................................... 26 5. Market Definition ....................................................................................................... 27 5.1. Principles .................................................................................................................... 27 5.2. The relevant product markets ..................................................................................... 28 5.2.1. The market for general search services ...................................................................... 29 5.2.1.1. The provision of general search services constitutes an economic activity ............... 29 5.2.1.2. Limited demand side substitutability with other online services ............................... 30 5.2.1.2.1. General search services versus content sites ............................................................ 30 5.2.1.2.2. General search services versus specialised search services ..................................... 31 5.2.1.2.3. General search services versus social networking sites ........................................... 33 5.2.1.3. Limited supply side substitutability with other online services ................................. 34 5.2.1.4. General search services on static devices versus mobile devices .............................. 34 5.2.2. The market for comparison shopping services ........................................................... 35 5.2.2.1. Comparison shopping services versus other specialised search services ................... 36 5.2.2.2. Comparison shopping services versus online search advertising platforms .............. 37 EN 2 EN 5.2.2.3. Comparison shopping services versus online retailers ............................................... 38 5.2.2.4. Comparison shopping services versus merchant platforms ....................................... 40 5.2.2.5. Comparison shopping services versus offline comparison shopping tools ................ 54 5.3. The relevant geographic markets ............................................................................... 55 5.3.1. The national markets for general search services ...................................................... 55 5.3.2. The national markets for comparison shopping services ........................................... 55 6. Dominant position ...................................................................................................... 56 6.1. Principles .................................................................................................................... 56 6.2. Google's dominant position in the national markets for general search services ....... 57 6.2.1. Market shares ............................................................................................................. 58 6.2.2. Barriers to entry and expansion .................................................................................. 62 6.2.3. The infrequency of user multi-homing and the existence of brand effects ................ 67 6.2.4. Lack of countervailing buyer power .......................................................................... 70 6.2.5. Google's argument that Google’s general search services are offered free of charge and the Commission's response .................................................................................. 70 6.2.6. Static devices versus mobile devices ......................................................................... 71 7. Abuse of a dominant position .................................................................................... 73 7.1. Principles .................................................................................................................... 73 7.2. The abusive conduct: the more favourable positioning and display, in Google’s general search results pages, of Google's own comparison shopping service compared to competing comparison shopping services ............................................. 76 7.2.1. Google positions and displays, in its general search results pages, its own comparison shopping service more favourably compared to competing comparison shopping services ....................................................................................................................... 77 7.2.1.1. The way competing comparison shopping services are positioned and displayed in Google’s general search results pages ........................................................................ 78 7.2.1.1.1. The way competing comparison shopping services are positioned in Google's general search results pages ....................................................................................... 78 7.2.1.1.2. The way competing comparison shopping services are displayed in Google's general search results pages .................................................................................................. 102 7.2.1.2. The way that Google’s comparison shopping service is positioned and displayed in its general search results pages ................................................................................ 103 7.2.1.2.1. The different ways that Google’s comparison shopping service is positioned in its general search results pages ..................................................................................... 103 7.2.1.2.2. The different way that Google’s comparison shopping service is displayed in its general search results pages ..................................................................................... 109 7.2.1.3. Google's arguments and the Commission's response ............................................... 110 7.2.2. The importance of user traffic for comparison shopping services ........................... 120 EN 3 EN 7.2.3. The Conduct decreases traffic from Google's general search results pages to competing comparison shopping services and increases traffic from Google's general search results pages to Google's own comparison shopping service ....................... 123 7.2.3.1. Analysis of user behaviour ....................................................................................... 124 7.2.3.2. Impact of the Conduct on generic search traffic from Google's general search results pages to competing comparison shopping services ................................................
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