Google Shopping Remedy Could Entrench Market Dominance, Coalition Warns

Twelve European comparison shopping companies have written to the European Commission expressing concerns that the remedy being developed for Google Shopping could ultimately favor the very company it is meant to regulate. The group, known as the CSS Group, argues that a proposed 'box-to-box' model would allow Google Shopping to dominate the market and push rival services back to advertising through Google's own platform.

The CSS Group estimates that their combined annual turnover exceeds 340 million euros, with over 93,000 active European merchants supported. They claim to account for 74% of all third-party comparison shopping clicks across the European Economic Area and the United Kingdom. The group argues that a closed box operated by Google would grant the company an unfair advantage, compelling retailers to advertise through Google Shopping simply to maintain visibility on search results pages.

The CSS Group has requested that the Commission require Google Shopping to bid inside every rival unit, as a safeguard against 'kingmaking'. They also propose testing any remedy on live search traffic before implementing it. The group's letter highlights their concerns and outlines the potential consequences of the proposed 'box-to-box' model.