The European Commission fined Google Inc. a record $2.7 billion on Tuesday for breaching antitrust rules in favoring its own search services over its competitors. The commission has further instructed Google to resolve the issue within the next 90 Days and failing to do so will attract a further fine of 5% of the Alphabets daily global turnover. That's a good thing.
The reason given is that the company favored its own comparison shopping product over others when displaying suggestions in Google Search.
Google will not be given any guidelines from Vestager for how to do that, who said it is up to the company to find a way of implementing the order.
The probe's focus is on whether Google unfairly banned competitors from websites that used its search bar and ads. "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 firm said. It accused the search engine company of restricting ads that would directly compete against AdSense for Search product.
The European Union's competition watchdog has fined internet giant Google over its online shopping service.
Two of the main points that led the EC to this decision was that Google systematically gave prominent placement of its own products and demoted rival brands. The company also defended the way it handles online shopping, saying that it connects users with advertisers "in ways that are useful for both".
The fine, equivalent to 3 per cent of Alphabet's turnover, is the biggest regulatory setback for Google, which settled with USA enforcers in 2013 without a penalty after agreeing to change some of its search practices. "The more consumers click on comparison shopping results, the more money Google makes", she said.
Google adopted the same practice in all 13 EU countries where it unveiled its shopping service, the European Commission says, starting with Germany and the United Kingdom in 2008 and, most recently, with Austria, Belgium, Denmark, Norway, Poland and Sweden in late 2013. "And advertisers want to promote those same products", the company statement said. What do you think of the European Commission decision?