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August 12, 2015

Alphabet does not cure Google’s European headache

EU commission will proceed with the anti-trust case.

By CBR Staff Writer

The formation of Alphabet will not save Google from the anti-trust case it is facing in the European Union (EU).

Google was accused of abusing its dominant position in the continent by giving priority to its own services over other sites.

The case signaled the first time a formal complaint had been made against Google.

Google announced that it was going under the umbrella of a new company Alphabet that will include new ventures like Nest, Calico, Google Ventures, Google Capital, and Google X.

Google will retain some of its other cash cows like Search, YouTube, and Android.

The Register cited European Commission spokesman Ricardo Cardoso as saying: "Google itself explained that it’s changing its structure to better run its different businesses. As far as the Commission is aware, there is no link to our competition investigations.

"In general, the Commission will always carry out its competition enforcement duties independently of the precise corporate structure of the companies under investigation.

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"A company does not insulate itself from a competition investigation through a change in corporate structure."

The investigations into Google are ongoing and the Commission plans to stick to the 17 August deadline given to the search giant to respond to the formal charges in the shopping search case.

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