European Competition Commissioner Joaquin Almunia said on Tuesday that US internet giant Google needs to improve its latest search settlement proposals otherwise will face formal charges by receiving a Statement of Objections from the European Commission.

Almunia made the remarks when Presenting the Annual Competition Report in a conference with European Parliament Committee on Economic and Monetary Affairs.

"Some of the twenty formal complainants have given us fresh evidence and solid arguments against several aspects of the latest proposals put forward by Google," said Almunia.

Almunia said at the beginning of the month he had communicated this to the company asking them to improve its proposals.

"We now need to see if Google can address these issues and allay our concerns," said Almunia.

Almunia added that if Google's reply goes in the right direction, Article 9 proceedings will continue. Otherwise, the logical next step is to prepare a Statement of Objections.

The commission began investigating allegations since 2010 that Google manipulates its search results to favor its own services and products over those of rivals.

In February, Google struck a deal with the European Commission which allow Google to avoid fines of up to 6 billion euros (7.73 billion U.S.dollars).

As EU's antitrust chief, Almunia is scheduled to leave office by the end of October. It was not clear if he leave Google case to his successor, the former Danish economy minister Margrethe Vestager.

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