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EU's Vestager not planning to rush Google, Gazprom antitrust cases

Published 09/10/2015, 13:13
© Reuters. EU Competition Commissioner Vestager speaks during an interview with Reuters in Brussels
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By Foo Yun Chee

BRUSSELS (Reuters) - An EU antitrust case against Gazprom (MCX:GAZP) will continue despite concessions from the Russian gas producer, meant to settle charges it abused its dominance in eastern and central Europe, the bloc's competition chief said on Friday.

European Competition Commissioner Margrethe Vestager also said it would take time to conclude the EU's five-year-old Google (NASDAQ:GOOGL) case, as she reviewed the internet search group's reply to charges of favouring its services over rivals.

"So far, every door is open in the Gazprom case, either for going through a decision maybe with remedies or to go through a process of binding commitments," Vestager told Reuters in an interview on her 10th floor office in the Commission's headquarters.

Both cases are seen as landmarks.

Gazprom's gas prices affect a swathe of the 28-country bloc, while to many companies, Google's more than 90 percent share of the Internet search market in Europe makes it central to the economy and everyday life.

Gazprom submitted concessions last month after the European Commission accused the state-controlled company of overcharging customers in Poland, Hungary and six other countries by up to 40 percent and blocking rivals from entering the market.

Asked if the offer was in the right direction, Vestager said she was in no hurry to close the case and was weighing her options.

Gazprom's offer does not address the Commission's concerns but it expects the company to improve the package, two sources with knowledge of the matter told Reuters.

Gazprom says the charges have no economic nor legal basis.

Vestager said she would not rush out a decision on Google despite the amount of time already spent on the case, begun by her predecessor Joaquin Almunia.

"Google has answered the statement of objections and now we are in the process of analysing that, and of course the most important for us is to make sure there is due process, that the rights of defence is respected," she said.

"So it may take some time to go through their response and then we will see."

A negative decision against the company could lead to it facing a fine of as much as $6.6 billion or 10 percent of its 2014 turnover and being forced to revise its internet search practices.

© Reuters. EU Competition Commissioner Vestager speaks during an interview with Reuters in Brussels

Google has rejected the EU charges, saying they are wrong on facts, law and economics. The company has already made three unsuccessful attempts to settle the case.

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