Google is to address four areas of the anti-competition concerns raised by the European Commission relating to online search and advertising.
A Google spokesman confirmed to V3 that the proposal had been made, adding, "We continue to work co-operatively with the Commission."
It is understood that Google chairman Eric Schmidt wrote the proposal in a letter addressed to European Competition Commissioner Joaquin Almunia.
However Google refused to disclose further details of the letter, so it is unclear how the search giant intends to change its current practices.
In May, Almunia asked the web giant to get back to the Commission by the beginning of July on how it intends to reform its competitive practices because it had received 16 complaints from Google rivals in the last two years.
Rivals include Microsoft, whose Bing search engine is struggling to compete with Google search in the market.
David Wood, a counsel member at the Initiative for a Competitive Online Marketplace (ICOMP), a pressure group funded by Microsoft, said Google's proposal shows acknowledgement by the firm that it has taken part in illegal anti-competitive behavior.
"It is vital to ensure that the remedies offered by Google end the discrimination and manipulation of search results that have had the effect of making the open internet a closed Google internet," said Wood in a blog post.
"Given Google's 94 per cent dominance over the European search market, it is imperative that the proposed remedies are incapable of circumvention and will help ensure the future development of the internet to the benefit of entrepreneurs, businesses, consumers and economies across Europe."
If a settlement cannot be reached, Google faces a fine of up to 10 per cent of its $3.7bn global revenue.
Google is also facing a similar hearing in the US, with executive chairman Eric Schmidt forced to deny the firm ever "cooked" search results to favour its own services.
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