1 00:00:00,040 --> 00:00:03,520 Speaker 1: The European Commission find Google two point four billion euros 2 00:00:03,600 --> 00:00:07,320 Speaker 1: for promoting its own shopping search results over competitors, and 3 00:00:07,360 --> 00:00:09,680 Speaker 1: it gave the company until tomorrow to make changes to 4 00:00:09,720 --> 00:00:13,440 Speaker 1: allow other services a better chance to compete. To comply 5 00:00:13,560 --> 00:00:15,760 Speaker 1: with the order, Google has announced it will make its 6 00:00:15,760 --> 00:00:18,759 Speaker 1: shopping service into a standalone company that will have to 7 00:00:18,760 --> 00:00:21,360 Speaker 1: bid against other companies for space at the top of 8 00:00:21,360 --> 00:00:25,080 Speaker 1: the Google Search page. The CEO of Kelcu, however, Who's 9 00:00:25,160 --> 00:00:28,360 Speaker 1: Which is one of Google's competitors in Europe, told Bloomberg 10 00:00:28,400 --> 00:00:31,240 Speaker 1: News that selling slash to competitors won't solve the problems 11 00:00:31,280 --> 00:00:34,360 Speaker 1: in the shopping search market. Here to talk with us 12 00:00:34,440 --> 00:00:37,680 Speaker 1: about Google's move to comply with the regulator's order is Thomas, 13 00:00:37,680 --> 00:00:42,519 Speaker 1: graphic partner at Cleary Gottlieb. Thomas, can you explain to 14 00:00:42,600 --> 00:00:49,159 Speaker 1: us exactly how Google's proposal here will work? Um? Yes, okay, 15 00:00:49,200 --> 00:00:53,000 Speaker 1: So uh in a nott shell, what Google is going 16 00:00:53,040 --> 00:00:57,360 Speaker 1: to do is it's going to give rival comparation shopping 17 00:00:57,400 --> 00:01:02,720 Speaker 1: services the same chance to lays product thats on Google 18 00:01:02,720 --> 00:01:06,119 Speaker 1: Search as it gives to Google Shopping. So there will 19 00:01:06,240 --> 00:01:10,920 Speaker 1: be full equal treatment between comparation shopping services such as 20 00:01:11,600 --> 00:01:16,280 Speaker 1: CALCU and Google Shopping. Google Shopping will have to bid 21 00:01:16,319 --> 00:01:21,920 Speaker 1: in competition with comparation shopping services for placement of its 22 00:01:21,920 --> 00:01:26,280 Speaker 1: product that's on Google Search. Will the auction aspect of this, 23 00:01:27,080 --> 00:01:29,880 Speaker 1: which might drive up the price of ads, be a 24 00:01:29,880 --> 00:01:35,520 Speaker 1: problem for EU regulators? Um? Did the auction process is 25 00:01:35,560 --> 00:01:37,880 Speaker 1: in here? And in the nature of of the issue 26 00:01:37,920 --> 00:01:41,440 Speaker 1: here because sort of what is that issue? Is that 27 00:01:41,560 --> 00:01:44,640 Speaker 1: the product that that Google shows on its on its 28 00:01:44,680 --> 00:01:48,960 Speaker 1: general search result pages, these are ads. They have always 29 00:01:49,000 --> 00:01:52,880 Speaker 1: been auctioned off. What is going to change is that 30 00:01:53,240 --> 00:01:56,760 Speaker 1: comparation shopping services will have the same opportunity to bid 31 00:01:56,800 --> 00:01:59,600 Speaker 1: for these ads, and and so they will achieve the 32 00:01:59,680 --> 00:02:04,120 Speaker 1: equal treatment that the European Commission is looking for. Well, 33 00:02:04,160 --> 00:02:06,560 Speaker 1: why is it then that the competitors don't seem to 34 00:02:06,640 --> 00:02:10,960 Speaker 1: like this idea very much? So it's uh, it's obviously, 35 00:02:11,040 --> 00:02:14,040 Speaker 1: you know, different people may have different views, but what 36 00:02:14,080 --> 00:02:17,560 Speaker 1: they are looking for? Um what what the views of 37 00:02:17,600 --> 00:02:21,880 Speaker 1: the competitors are? It's not really here the benchmark for compliance. 38 00:02:22,000 --> 00:02:27,640 Speaker 1: The Commission has set out the paramidals for compliance in 39 00:02:27,639 --> 00:02:32,359 Speaker 1: its decision and that's what Google is working towards. Now. 40 00:02:32,360 --> 00:02:38,240 Speaker 1: It's possible that you know, over the process of this investigation. Uh, 41 00:02:38,400 --> 00:02:43,360 Speaker 1: some of the complainants have uh developed expectations what this 42 00:02:43,480 --> 00:02:45,800 Speaker 1: outcome will be, and it may be that, you know, 43 00:02:46,360 --> 00:02:49,400 Speaker 1: some of them are disappointment about the outcome. And it's 44 00:02:49,400 --> 00:02:53,760 Speaker 1: also it's the case that at earlier stages in the investigation, 45 00:02:54,720 --> 00:02:59,360 Speaker 1: the Commission, in one of its charge sheets, suggested that 46 00:03:00,440 --> 00:03:04,640 Speaker 1: these arts should be made available to competitors almost at 47 00:03:04,639 --> 00:03:08,360 Speaker 1: a near free basis at once sent the fixed price. 48 00:03:09,080 --> 00:03:12,040 Speaker 1: But that fell away, that's no longer in the decision. 49 00:03:12,160 --> 00:03:14,280 Speaker 1: So some of the complainants, like Calco may still be 50 00:03:14,360 --> 00:03:16,919 Speaker 1: thinking that that's you know, that's the solution, but that's 51 00:03:16,960 --> 00:03:20,720 Speaker 1: not what is in the decision. Um. Your Competition Commissioner 52 00:03:20,760 --> 00:03:23,560 Speaker 1: margretvest day Er said last week that she would start 53 00:03:23,600 --> 00:03:27,720 Speaker 1: investigating if Google's offer doesn't work and if companies that 54 00:03:27,880 --> 00:03:31,880 Speaker 1: complained about Google's behavior are still unhappy and we have 55 00:03:32,520 --> 00:03:37,320 Speaker 1: Kelku and found them already complaining. So is that a 56 00:03:37,360 --> 00:03:40,960 Speaker 1: built in problem? Yes, so I think, you know, I 57 00:03:41,000 --> 00:03:46,920 Speaker 1: think it's normal that the Commission will listen to market participants, 58 00:03:46,960 --> 00:03:52,080 Speaker 1: but ultimately the benchmark is not the view of competitors 59 00:03:52,240 --> 00:03:56,760 Speaker 1: or the market participants. The benchmark for compliance is what 60 00:03:57,040 --> 00:04:01,240 Speaker 1: the decision sets out as its remedy and the requirements 61 00:04:01,240 --> 00:04:05,440 Speaker 1: that are specified in the decision for a compliant remedy. So, Thomas, 62 00:04:05,480 --> 00:04:09,560 Speaker 1: do you think that the Commission is, despite the whatever 63 00:04:09,600 --> 00:04:15,120 Speaker 1: complaints the competitors may have, likely to approve what Google 64 00:04:15,160 --> 00:04:19,120 Speaker 1: has done as being in compliance with disorder. So there 65 00:04:19,200 --> 00:04:23,400 Speaker 1: is no formal approvement approval for seen in this process. 66 00:04:23,400 --> 00:04:28,640 Speaker 1: And that's that's different from the commitment procedure that Google 67 00:04:28,760 --> 00:04:31,920 Speaker 1: was engaged with the European Commission earlier in the process, 68 00:04:32,040 --> 00:04:36,240 Speaker 1: where Google was trying to negotiate commitments and those commitments 69 00:04:36,480 --> 00:04:41,560 Speaker 1: required approval, required the decision of acceptance by the Commission. Here, 70 00:04:41,920 --> 00:04:45,920 Speaker 1: the Commission has adopted its decision. It has said how 71 00:04:46,040 --> 00:04:50,440 Speaker 1: Google needs to comply, and it's then for Google to 72 00:04:51,200 --> 00:04:53,479 Speaker 1: ensure this compliance. And there's not going to be any 73 00:04:53,520 --> 00:04:57,760 Speaker 1: kind of formal approval um obviously if there is, if 74 00:04:57,760 --> 00:04:59,960 Speaker 1: there is, if there is non compliance, then the commit 75 00:05:00,400 --> 00:05:04,279 Speaker 1: may intervene, but it will not it will not issue 76 00:05:04,320 --> 00:05:07,240 Speaker 1: a formal approval decision. All right, Well, our thanks to 77 00:05:07,279 --> 00:05:10,240 Speaker 1: Thomas Graff, a partner at Clary Gottlieb, who joined us 78 00:05:10,240 --> 00:05:13,400 Speaker 1: from Brussels to talk about Google spinning off its shopping 79 00:05:13,400 --> 00:05:16,040 Speaker 1: services in the European Union into a separate company