Competition Commissioner Joaquin Almunia said on Wednesday that Google´s offer to label its own services in general web search results and display more rival services did not go far enough.
"After an analysis of the market test that was concluded on June 27, I concluded that the proposals that Google sent to us are not enough to overcome our concerns," he said.
The Commissioner has written to Eric Schmidt, Google´s executive chairman, "asking Google to present better proposals, to improve its proposal".
These changes, which would be enacted in the next five years, included more labelling of links that promote Googles own search services (like shopping), along the lines of showing that they are promoted placements. There would also be more graphical separation of the above links again, like how you see promoted ads in the search results page. The company would also offer the ability for rival search sites to tag their results so that Google would be unable to improve its own search offering by indexing those pages.
Google, which has a market share of over 80 percent in Europe´s Internet search market according to research firm comScore, could face a fine as much as 4 billion Euro if it does not resolve the issue.
It is the latest development in a three-year investigation of claims that Google abuses its dominant share of the general web search market to promote its own specialist services, such as shopping comparison, damaging competition online.
Google proposed changes in April in the hope of settling the case but the complainants have analysed the potential effect and claim they would have little or no impact.