EU slams Google with $2.73bn fine for anti-competitive practices

Search engine giants Google have been slammed with $2.73 billion fine by the European Union following a major investigation into alleged anti-competitive practices conducted by the European body.

Reports say the decision was reached for Google to pay the hefty fine after the Commission’s investigation into its activities emerged in October 2016.

The EU revealed that its findings revolves around Google’s practice of serving up web results that prioritize products sold via its shopping service, which is being interpreted as an unfair advantage over other retailers offering the same items.

The EU has also released a press statement to that effect revealing further that not only does the company stand accused of giving prominent placement to its own shopping service, it’s alleged that it also demotes rival services in order to promote its own.

In the press statement, the EU said; “Having now investigated Google’s practices for several months, the Commission has officially issued the fine of $2.73 billion, with that figure being settled upon as a result of the “duration and gravity of the infringement.

“In addition, the company must modify its conduct with 90 days to avoid being subject to penalty payments equaling up to 5 percent of the average daily worldwide turnover of its parent company, Alphabet.

Commenting on the matter, the EU Commissioner Margrethe Vestager said; “Google has come up with many innovative products and services that have made a difference to our lives.

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“That’s a good thing. But Google’s strategy for its comparison shopping service wasn’t just about attracting customers by making its product better than those of its rivals. Instead, Google abused its market dominance as a search engine by promoting its own comparison shopping service in its search results, and demoting those of competitors,” she added.

Reacting to the development, Google said its shopping service is designed to deliver a streamlined experience for consumers that helps them find the products they’re looking for quickly and it does not in anyway demote rival services in order to promote its own.

Senior vice president and general counsel Kent Walker in a blog post published in response to the ruling said; “We believe the European Commission’s online shopping decision underestimates the value of those kinds of fast and easy connections.”

Reports say Google is currently mulling whether or not to appeal the decision (fine) by the EU which may get significantly larger if it does not amend the way shopping results factor into its search engine in the next 90 days.

 

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