Google Gets Record $2.7 Billion EU Fine for Skewing Searches
However Google has lost its biggest battle of regulation, thus obtaining a recent fine of 2.4 billion euros ($ 2.7 billion) from European Union forces that say the search engine biased results in Favor the reduction of the research services of smaller shops.
Inc. alphabet has 90 days to “end their illegal conduct” and give equal treatment to competitors’ comparison service, according to a binding order from the European Commission on Tuesday.
It is up to Google to choose the path it does and should be directed to the EU within 60 days of its plans. It does not involve a risk of fines of up to 5 percent of your daily income.
“Google’s strategy for its comparison shopping service not only to attract customers by improving its product rather than rivals,” said Margrethe Vestager, EU antitrust chief.
“It denied other companies the opportunity to compete and innovate merits. And above all, European consumers were denied a real selection of services.”
Google’s California-based Mountain View shares fell 1.5 percent on the market prior to opening in New York. They have increased 23 percent this year.
The Vestager decision marks the end of a long seven-year investigation driven by complaints from small business sites as well as major names including News Corp., Axel Springer SE and Microsoft Corp. European politicians have urged the EU to punish Google or even break it While critics say that US regulators target American companies to succeed.
“I hope the Commission quickly reached the other two ongoing investigations against Google,” Markus Ferber MEP Germany.
“Unfortunately, the Google case also illustrates that competition cases tend to leave too much time before finally resolved. In a fast digital economy, it often means that market abuse is effectively paid and the assailant managed to eliminate competition.”
Google has launched its own shopping comparison service since 2008, systematically giving an important position when people are looking for an article, said the EU. Recurring comparison sites typically appear on the four-page search results, thus denying them to a mass audience for the first page attracts 95 percent of all clicks.
“Due to Google’s illegal practices, traffic to Google’s shopping comparison service has increased significantly, while its rivals have suffered very significant traffic losses on a sustainable basis,” the EU said, citing figures up to 45 per cent. Of traffic to Google’s service.
Fines Tuesday could be the first in a series of EU antitrust sanctions for Google, which fights on at least two other fronts, including its Android mobile software and online AdSense advertising service.
The decision follows antitrust fines of $ 7.8 million and sanctions Italian, German and French privacy authorities. Europe has proved to be a difficult jurisdiction for Google, which broke the top court in the region, losing a right case to forget that three years ago.