UPDATE 1-Alphabet’s Google acts to comply with EU antitrust order

(Adds European Commission, ICOMP comments)

By Foo Yun Chee

BRUSSELS, Aug 29 (Reuters) – Alphabet Inc’s Google
said it will notify EU regulators on Tuesday on how it plans to
ensure its search engine does not favour its own shopping
service over rivals’.

Google was hit with a record 2.4 billion euro ($2.9 billion)
fine from the EU over the practice in June and has until
midnight on Tuesday to come up with proposals to end the
anti-competitive behaviour.

The European Commission said on June 27 that the world’s
most popular Internet search engine had abused its dominance in
Europe to give prominent placements in searches to its own
comparison shopping service and demote those of rivals.

As well as ordering Google to come up with a solution, the
Commission said the U.S. company must stop the practice by Sept.
28.

Google said it will communicate its compliance plan to the
EU competition enforcer on Tuesday in line with the deadline.

Failure to do so could expose the company to penalty
payments of as much as 5 percent of Alphabet’s average daily
worldwide turnover or around $12 million a day, based on the
parent company’s 2016 turnover of $90.3 billion.

“It is Google’s sole responsibility to ensure compliance and
it is for Google to explain how it intends to do so,” the
Commission said in a statement on Tuesday.

Lobbying group ICOMP, whose members include Google rivals
online mapping services Hot Map and Streetmap, as well as CEPIC
(Centre of the Picture Industry) and TradeComet which owns a
rival search engine, said regulators should publicise Google’s
proposal.

“These affect everyone in the online and mobile worlds, so
they must be made public for evaluation,” ICOMP head Michael
Weber said.

Google is also under fire from the EU over practices related
to its smartphone mobile operating system Android, where it may
face a landmark fine by the end of the year, and regarding
online search advertising.

($1 = 0.8313 euros)
(Reporting by Foo Yun Chee;…

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