Is EU Politics Playing Havoc With Google Inc (GOOG)’s Vision of Setting Up London Office By 2016?

Google Inc (NASDAQ:GOOG)’s delay in starting work on its $1 billion office in London is being speculated to be due to the European Union politics. Even though the company had announced relocating over 5,000 employees to the UK office in 2016, but this seems unlikely as work has not even begun yet. The company spokesperson cites unsatisfactory architecture plans as a reason for the delay, but this seems to be just an excuse. There are many legal constraints that the tech giant is already facing in the European market, and this is impacting the business of the firm.

In April 2015, the EU authorities filed a lawsuit against Google Inc for using the search dominance in a biased way that was negative for the rivals. Another antitrust violation on Google’s Android technology is also underway.

Google’s Argument

In a blog titled ‘The Search for Harm’, Google has argued that all of this is nonsense and such a case would have led the company to terminate its office in London and ask all its employees in the UK head office to return.

Google Inc also stated, “Google’s position in Europe could be about to drastically change if the European Commissions’ plans for a single digital market come to fruition.”

The geo-blocking online consumers practice of Google has been found as unjustified by Europe, and they are cracking down this practice and searching for loopholes against the U.S. company.
“Geo-blocking is the denial of access to websites of retailers based in other member states or re-routing customers to a local website with different price structures,” explained a Google spokesperson.

Google stands to lose

If such a ban was imposed on geo-blocking by the European authorities, it would become difficult for Google to provide personalized search results to its users. This would be harmful to Google. Google reportedly spent $3.4 million to $3.9 million lobbying European officials in 2014.