EU fines Google record $3.57 billion



June 27, 2017 21:32:23

The European Union’s competition watchdog has slapped a record 2.42-billion-euro ($3.57-billion) fine on internet giant Google for breaching antitrust rules with its online shopping service.

European regulators said:

“Google has abused its market dominance as a search engine by giving an illegal advantage to another Google product, its comparison shopping service.”

It gave the California company 90 days to stop or face fines of up to 5 per cent of the average daily worldwide turnover of parent company Alphabet.

The European Commission (EC), which polices EU competition rules, alleged Google elevates its shopping service — even when other options might have better deals.

The Commission said Google “gave prominent placement in its search results only to its own comparison shopping service, whilst demoting rival services”

“It stifled competition on the merits in comparison shopping markets,” the watchdog said.

Google ‘reviewing EC decision, considering appeal’

Google maintained it was just trying to package its search results in a way that made it easier for consumers to find what they wanted.

“When you shop online, you want to find the products you’re looking for quickly and easily. And advertisers want to promote those same products,” Google senior vice-president Kent Walker said in a statement.

“That’s why Google shows shopping ads, connecting our users with thousands of advertisers, large and small, in ways that are useful for both.

“We will review the Commission’s decision in detail as we consider an appeal, and we look forward to continuing to make our case.”

The fine is the highest ever imposed in Europe for anti-competitive behaviour, exceeding a 1.06-billion-euro ($1.56-billion) penalty on Silicon Valley chip maker Intel in 2009.

But the penalty is likely to leave a bigger dent in Google’s pride and reputation than its finances.

Alphabet has more than $120 billion in cash, including about $73 billion in accounts outside of Europe.









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