Tech giant Alphabet Inc. (GOOGL), Google, is facing another antitrust complaint, this time from rival Danish job search engine Jobindex.
The complaint was filed with the European Union (EU) for unfair commercial practices. According to the complaint, Google presents the results of its own job search service, Google for Jobs, in the top section of the page on Google. After its European launch in 2018, Google for Jobs was criticized by 23 online job search rivals in 2019, alleging a loss of market share due to Google’s push to market its own search engine.
EU antitrust chief Margrethe Vestager has already looked into the matter and has been on the sidelines on the matter. However, the latest complaint might cause Vestager to dig deeper into the matter, Reuters Noted.
Although Google has claimed to have made changes to its portal in Europe before, Vestager has fined the search engine over $8.4 billion in antitrust penalties on multiple counts to date. .
How does Google for Jobs work?
Google for Jobs is a job exchange portal that accumulates and displays job postings on the web, allowing candidates to view job postings in their Google search engine. However, the service does not allow candidates to apply directly on the search engine, and they are routed to third-party websites for the application.
Additionally, candidates can pre-screen, save and set alerts for their favorite job postings on Google for Jobs, making it easy to refer them in the future.
Jobindex, one of Denmark’s leading job search engines with the largest database of jobs, has complained that Google has tipped the scales in its favor by practicing anti-competitive measures.
Kaare Danielsen, founder and CEO of Jobindex, said he lost nearly 20% of search engine traffic to poor Google for Jobs service, not only hampering candidates’ chances of selecting the best jobs available on market, but also recruitment services. ‘ reach a maximum number of job seekers.
Jobindex also accused Google for Jobs of copying some of its own ads without permission and marketing them on the portal against the consent of its business partner.
Danielsen said: “This not only stifles competition between recruitment services, but directly harms labor markets, which are at the heart of any economy.”
The CEO pleaded with the EU to take tough action against Google for Jobs while imposing multiple periodic payments to ensure long-term compliance.
With 30 unanimous buys, the GOOGL share benefits from a consensual strong buy rating. Alphabet’s average price target of $3,138.17 implies upside potential of 33% from current levels. Meanwhile, its stock has lost 18.6% so far this year.
TipRanks’ website traffic tool provides insight into the steady decline in visits to Alphabet’s website. In March 2022, total estimated global visits across all devices peaked at 102.24 billion, followed by 87.50 billion visits in April and 73.74 billion visits in May.
Notably, in May, Alphabet’s website traffic saw a 15.72% year-over-year drop in monthly visits. However, since the start of the year, website traffic growth has remained relatively constant with a marginal increase of 0.28% compared to the same period last year.
Alphabet shares are facing the brunt of market turmoil similar to other battered tech stocks. However, the company enjoys a wide moat and is expected to benefit from a robust cloud network, a trending YouTube channel, and the world’s largest search engine. Once the macroeconomic headwinds are behind us, Alphabet will begin to recoup its lost share.