Google gets EUR2.43 billion fine

The European Commission has fined Google EUR2.43 billion (approx. AU$3.6 billion) for misusing its market power over internet searches.

According to the Commission, Google has over 90% market share for internet searches in the EU.

The Commission found that Google had abused this dominant position in internet searching by promoting results for its own Google comparison shopping service over results for competing comparison shopping services.

At this stage, the Commission’s press release and Factsheet are available.

While this is no doubt the start of a long legal process, Ben Thompson at Stratechery has an interesting, succinct analysis of the application of competition rules to Internet players here which is well worth reading.

Google and facilitating or authorising

DesignTechnica operates bulletin boards. The plaintiff alleged that some postings on the bulletin boards defamed it. In addition to suing DesignTechnica, the plaintiff sued Google for libel by reproducing snippets of the (allegedly) defamatory material in search results.

Eady J, sitting in the Queen’s Bench Division,  dismissed the plaintiff’s claims against Google on the grounds that Google did not publish the material.

The case obviously turns on the requirements for an action in defamation. Of potential interest in an intellectual property context, however, is that his Lordship noted that the generation of the snippets was automatic, not volitional. Thus, his Lordship analagised Google’s position to the position of someone who merely ‘facilitated’ infringing intellectual property conduct rather than ‘authorised’ it.

In the course of his judgment, his Lordship explained:

54.  The next question is whether the legal position is, or should be, any different once the Third Defendant has been informed of the defamatory content of a “snippet” thrown up by the search engine. In the circumstances before Morland J, in Godfrey v Demon Internet, the acquisition of knowledge was clearly regarded as critical. That is largely because the law recognises that a person can become liable for the publication of a libel by acquiescence; that is to say, by permitting publication to continue when he or she has the power to prevent it. As I have said, someone hosting a website will generally be able to remove material that is legally objectionable. If this is not done, then there may be liability on the basis of authorisation or acquiescence.

55.  A search engine, however, is a different kind of Internet intermediary. It is not possible to draw a complete analogy with a website host. One cannot merely press a button to ensure that the offending words will never reappear on a Google search snippet: there is no control over the search terms typed in by future users. If the words are thrown up in response to a future search, it would by no means follow that the Third Defendant has authorised or acquiesced in that process.

In addition, Eady J noted that Google had promptly blocked access to specific URLs, but could not reasonably be expected to block all search results which could include the (allegedly) infringing snippets.

Metropolitan International Schools Ltd v DesignTechnica [2009] EWHC 1765 (QB).

Lid dip: Prof Goldman