Is 'clueless' Europe going to destroy Google?

As the European Commission files antitrust charges against Google, analysts warned that such a move could be a big mistake.

In what it called a Statement of Objections, the European Union's executive arm alleged that the tech giant abused its dominant position" in the Internet search market. It currently holds an over-90 percent market share, according to the commission, and is accused of favoring its own comparison shopping product in its general search results pages.

Responding to the commission's announcement, Google said in blog post that it "strongly" disagreed with the EU's objections and would make its case in the coming weeks.

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Trip Chowdhry, managing director of Global Equities Research, said EU charges against the search engine behemoth were a protectionist move and a big mistake.

"I think the European Union is totally clueless…they're going to destroy the company," he told CNBC's "Capital Connection" Tuesday, ahead of the announcement by the Commission.

"Basically, what the EU is trying to do is reward complacency…Ten years back, the search industry never existed. We're living in an environment where industries are created and the companies (become market leaders). Look at cloud (computing) - the leader is Amazon.com with 90 percent market share. And when it comes to mobile, the leaders are Apple and Google."

Chowdhry argued that the EU was "penalizing success and rewarding complacency."

'Really big deal'

However, industry analysts warned that Google can't afford to shrug off charges from the EU, with one warning that they could potentially mark the start of Google's decline in Europe – and beyond.

"I think the entire tech industry, particularly those that compete with Google, are watching this with great interest," Patrick Moorhead, principal and principal analyst at Moor Insight and Strategies, told CNBC Wednesday. "Google has already exited China and they're getting into trouble in the EU."

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He called the decision a "really big deal" for the tech industry and warned that Google could become the next Microsoft – another huge tech company accused by the European Commission of abusing its dominant position in the market.

Microsoft was fined $794 million in 2007 – the largest ever fine handed out by the EU at that time - and ordered to divulge certain information about its server products and release a version of Microsoft Windows without Windows Media Player.

Analyst Moorhead said that Microsoft had never really recovered from that decision in Europe, and the same could happen to Google.

"For years, Google's competitors have been looking at it like people used to look at Microsoft twenty years ago before they got into trouble," he added. "Many people saw the trouble that Microsoft got into in Europe as the point which really initiated their declines versus other companies."

- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. CNBC's Everett Rosenfeld contributed reporting to this report, follow him on Twitter @Ev_Rosenfeld.