Google search investigation sparked by complaint from British site

Brussels opens investigation into Google's business practices after complaints about its display of internet search results

A tiny British shopping comparison site has triggered an investigation by the European Commission into whether Google is abusing its monopoly position by deliberately lowering rivals' sites in its search results.

The European Commission announced today that it will carry out an investigation into Google's business practices – the first such in the world and one certain to be watched with interest.

The case could take years to be decided but could lead to Google facing billions of euros in fines, and strict regulations about how it can lay out its search results, especially when they include its own services. Fines can reach 10% of revenue, which would amount to $2.4bn (£1.54bn) based on the company's 2009 earnings figures.

The investigation follows complaints by three companies – Foundem, a British price comparison site; Microsoft-owned Ciao; and the French legal search engine justice.fr – that links to their services appear too low on Google's general search results. They also noted that when Google offers similar services – such as online price comparison – it puts its own links higher on the sponsored search results that companies have to pay for.

"We're very pleased the commission has taken this important step, but we're not surprised," said Shivaun Raff, chief executive of Bracknell-based Foundem. "European law says that if you have a dominant position in a market, you have a responsibility to behave in a way that doesn't crush competition in the market."

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