Google Slapped with $2.7B Fine for EU Antitrust Violation

Fine Margrethe Vestager

However, using that dominance to hinder "competition on the merits" in that market or any other market is against antitrust rules.

The Commission has come under fire in the United States for a perceived bias against USA companies. Officials in the bloc vigorously deny these claims. Last year, Apple was hit with a record €13 billion (£11.3 billion) tax bill after the Commission, led by commissioner Margrethe Vestager, ruled its tax arrangements in Ireland amounted to "state aid".

In targeting the activities of these digital giants, experts say, European authorities are laying down a marker for more hands-on control of how much of the digital world operates.

The $2.7 billion fine represents just over 2.5% of Google's revenue previous year and Alphabet, Google's owner, had $92.4 billion in cash as of end of March.

The biggest risk to Google is not the fine but the changes demanded to its business, said Richard Windsor, an independent financial analyst who tracks competition among the biggest USA and Asian internet and mobile companies. She said hundreds of companies, including some based in the U.S., complained about the way Google displayed its shopping service. "It's always been like that". The probe includes whether the search results favor Google's services, such as its price comparison business, how it displays the contents of rivals, and how it manages ads. The Commission has found that Google violated European Union antitrust laws by giving search preference to its own comparison shopping service at the expense of its competitors. A shopping search query through Google would routinely return results with Google Shopping at or near the top of the results list.

"The EU has effectively decided that some companies have become too big to innovate", Robert Atkinson, president of a think tank called The Information Technology and Innovation Foundation, said in a statement. Google denies the accusations. The policy, which has now been deemed illegal, not only failed to give customers all shopping options but also hampered the businesses of retailers.

Sears to close another 20 stores
A "virtual career transition" website will be available in the coming weeks at no cost to employees, said a spokesperson. Kmart stores in Clementon, East Brunswick, Manahawkin, Mantua, Pleasantville and Rio Grande closed this year.

"Google shows shopping ads, connecting our users with thousands of advertisers, large and small, in ways that are useful for both", Google general counsel Kent Walker explains in a post to the Google in Europe blog.

Google said it will "review the commission's decision in detail" as they consider an appeal.

KitGuru Says: I have never fully understood the objection the EC has had to Google's shopping/price comparison search engine. The authorities can demand that Google make further changes if they are not satisfied with the initial proposals.

"And most importantly, it has prevented european consumers to benefit from a real choice of services, and take full advantage of innovation", has accused Ms. Vestager. The company is likely to fiercely oppose such a move.

This sanction could create a precedent for other Google services, like Google Images or Google News, against whom complaints similar to that filed against Google Shopping have been filed.

Related news:

Hot News

isis-killer-beheading-video-story-top Senior Ukrainian intelligence officer killed in auto bombing
Jun 28, 2017 - 02:43
In March former Russian lawmaker Denis Voronenkov turned Kremlin critic was shot dead in central Kiev . Fighting in Ukraine's east has killed more than 10,000 people, according to the United Nations.

isis-killer-beheading-video-story-top Valley Children's Hospital makes top 50 national rankings in three specialties
Jun 28, 2017 - 02:42
Boston Children's Hospital is still the best pediatric hospital in the country , according to the latest rankings from U.S. Children's Hospital of Pittsburgh of UPMC ranked ninth on the honor roll list with rankings in all 10 specialties.

isis-killer-beheading-video-story-top Swedish government announces release of hostage in Mali
Jun 27, 2017 - 02:57
According to Swedish media reports, Gift of the Givers had been negotiating a ransom with the hostage-takers. Rijke was freed in April 2015 by French special forces.

isis-killer-beheading-video-story-top Liverpool's Salah Hoping Chelsea Experience Will Stand To Him At Anfield
Jun 26, 2017 - 00:41
Liverpool have signed two players in the summer transfer window after England Under-20 worldwide Dominic Solanke in a free transfer from Chelsea .

isis-killer-beheading-video-story-top Trump accuses Obama of prior knowledge about Russia's meddling
Jun 26, 2017 - 00:40
For some Democratic lawmakers, meanwhile, the bombshell report affirmed what they said they had long suspected. Cooper went on to claim that as a candidate, Trump treated the threat of Russian hacking as a "joke".

isis-killer-beheading-video-story-top Radio Club holds a 24 hour field exercise
Jun 26, 2017 - 00:34
He believes one of the reasons is because it has become simpler to get a license, which is acquired by passing an examination. The Columbia Amateur Radio Association participated in the drill at Triadelphia Ridge Elementary School in Ellicott City.

isis-killer-beheading-video-story-top India eliminated in the quarter-finals
Jun 24, 2017 - 00:08
Malaysia , banking on counterattacks, began the proceedings by forcing two successive penalty corners in the third minute. A minute later, Malaysia doubled their lead as Tengku neatly deflected in from their fourth penalty corner.

isis-killer-beheading-video-story-top Two soldiers killed by Pakistan's BAT, two militants killed on LoC
Jun 23, 2017 - 00:39
Army sources said the infiltrators were spotted and engaged in a firefight "The infiltrators were fired upon". That attack too was carried out under the cover of shelling by the Pakistani troops.

Cameroon coach angry at Confederations Cup traffic delays
Jun 23, 2017 - 00:39
Germany came to the Confederation Cup with a young squad that has only three players from its World Cup-winning team. We knew how they played , knew their tactics.

Seattle police release audio of woman's fatal shooting
Jun 23, 2017 - 00:28
The Blotter posting indicates that "both officers were equipped with less lethal force options , per department policy". The officers who shot Lyles are now on a paid administrative leave which is a standard protocol in a shooting.

Thousands attend slain Muslim teen's funeral in Virginia
Jun 22, 2017 - 06:02
On Tuesday, Muslim groups throughout the US held vigils in the teen's honor, The Associated Press reported . Detectives told Nabra's mother that the teenager was struck with a metal bat, The Washington Post reported.

Family urges calm after Milwaukee ex-cop's acquittal
Jun 22, 2017 - 06:00
A jury cleared a former black Milwaukee police officer of all charges in connection to his shooting of a black man Wednesday. During the foot chase, prosecutors claimed , Smith threw his gun over a fence and was defenseless when the officer shot him.

isis-killer-beheading-video-story-top Kia tops new car quality survey for second straight year
Jun 22, 2017 - 05:58
For the second straight year, Detroit-based brands outscored foreign nameplates with fewer new-car problems, according to the J.D. Power also bestows plant-quality awards as part of IQS, based exclusively on defects and malfunctions, not design-related issues.

isis-killer-beheading-video-story-top Golovkin dismisses Mayweather vs McGregor as 'circus show'
Jun 21, 2017 - 05:00
Win or lose, you're looking at a guy who's already pretty damn rich and gonna transition that into being wild fucking rich. Furthermore, all his achievement can go on and on but one thing they can't deny though is that Irishman is a victor .

isis-killer-beheading-video-story-top Perfect shot: Durant's late 3 gives Warriors 3-0 Finals lead
Jun 21, 2017 - 04:58
Curry, victor of the last two MVP awards, is fully healthy after struggling through last year's Finals. Cleveland would have to shoot exceptionally well to win and cover and I don't see it happening.