Google Fined $2.7 Billion by the European Union for "Abusing Search Engine Dominance"

Google hit with record $2.7Bn fine by EU antitrust regulators

Google hit with record $2.7Bn fine by EU antitrust regulators

The Commission said that Google acted illegally by giving priority placement in search results to its own shopping service, while relegating results from rivals to areas where potential buyers were much less likely to click. "It denied other companies the chance to compete on the merits and to innovate".

Margrethe Vestager also said that Google is deep into illegality territory.

In addition to the fine, the European Union is requiring that Google and its parent company Alphabet 'stop [their] illegal conduct within 90 days' by modifying how the Google Shopping results are treated, and if the companies fail to do so they would have to pay additional fines to the tune of five percent of Alphabet's daily global turnover for each day they are in breach.

The EC fined Google 2.42 billion euros ($A3.5 billion) for unfairly favouring its own shopping recommendations in search results - a move welcomed by News Corp, which said the California-based tech firm's dominance was a big concern.

90 Number of days Alphabet's Google has to "stop its illegal conduct" and give equal treatment to rival price-comparison services.

The Commission found that Google had a market share in searches of over 90 per cent in most European countries. According to Google, its entry into online shopping space has been good for consumers and retailers, and argues that it was not a monopoly player in online shopping.

The ruling has been years in the making, with the European Commission first sending a letter to Google about the matter in 2015. European regulators have in the past investigated Microsoft, Intel, Apple, Google, Facebook and Amazon, raising claims that Brussels was waging a war against the Silicon Valley, but the claim has been denied by the Commission.

"We look forward to continuing to make our case", Kent Walker, Google's general counsel, said in a statement.

♦ The EU says Google doesn't subject its own service to its algorithm, which ranks search results on quality and user relevance.

Mr Walker, wrote: "When you shop online, you want to find the products you're looking for quickly and easily".

Google reportedly uses a type of online advertising known as Product Listing Ads, or PLAs.

A Google spokesman said: 'We respectfully disagree with the conclusions announced today.

The company will review the decision and consider an appeal.

He urged it to act on Google's Android mobile operating system following its 2013 complaint that Google restricted competition in software running on mobile devices.

Recommended News

  • US mayors OK plan to use only renewable energy

    US mayors OK plan to use only renewable energy

    There are almost 1,400 such cities in the country today, and each city is represented in the Conference by its chief elected official, the mayor.
    Australia Open 2017 | Kidambi Srikanth stuns Chen Long to clinch title

    Australia Open 2017 | Kidambi Srikanth stuns Chen Long to clinch title

    Kidambi Srikanth with this became the fifth player to play three consecutive Super Series final. He defeated the Olympic champion Chen Long in straight games 22-20, 21-16.
    Trial of accused leaker Reality Winner set for October

    Trial of accused leaker Reality Winner set for October

    The federal trial of 25-year-old Augusta NSA contractor Reality Leigh Winner will begin October 23. Victor has been accused of leaking classified information about Russian Federation to the media.
  • ACE announces National Portfolio arts organisations for 2018-22

    ACE announces National Portfolio arts organisations for 2018-22

    "Alongside continuing support for our great national companies, we've funded inventive, pioneering arts organisations and a new range of museums across the country".

    What is bird flu and can you get it?

    The documents are to be returned to the nearest veterinary office", said Modisa. Eggs were not allowed to move off the farm.
    Tottenham 2017-18 Premier League schedule: Highlights and key fixtures

    Tottenham 2017-18 Premier League schedule: Highlights and key fixtures

    Manchester City can pick up their most points after the October global break when they play Stoke , Burnley and West Brom. It looks like former United forward Hatem Ben Arfa, now at Paris Saint-Germain, will be on the move again this summer.
  • Companies weigh cyberattack cost, with Ukraine hit hard

    Companies weigh cyberattack cost, with Ukraine hit hard

    India's shipping ministry said meanwhile a terminal run by Maersk at the Mumbai port, the largest in India, was also affected. The company did note that its Maersk Line vessels are maneuverable and able to communicate and that the crews are safe.

    PM challenged to end austerity by backing police and fire services

    Mrs May should have just enough numbers to vote the amendment down, after striking a deal to stay in office with a small Northern Irish party.
    RDU police searching for Starbucks employee

    RDU police searching for Starbucks employee

    Allison Cope went on her scheduled break at the Terminal 2 pre-security Starbucks but never returned, according to WTVD . She was last seen wearing a black HMS Host-branded Starbucks polo shirt, blue jeans, and black sneakers, police said.
  • Rockets, Clippers Agree to Blockbuster Trade for Chris Paul

    While Paul and Harden are certainly an impressive duo, Rockets general manager Daryl Morey has his sights set on something bigger. However, the opportunity to pair with James Harden toppled plans to have Paul re-sign and keep the Clippers All-Star core intact.
    Australians ditch religion at rapid rate, becoming more diverse

    Australians ditch religion at rapid rate, becoming more diverse

    It's been kept relatively young by Asian-born immigrants - median age 35 years - compared with Europe - median age 59 years. Half of Australia was born, or had a parent who was born, overseas, prompting the ABS to call us a " nation of nations ".
    Iraqis fight house to house for costly victory in Mosul

    Iraqis fight house to house for costly victory in Mosul

    Members of the Iraqi Federal Police gesture after returning back from the front line in the Old City of Mosul, Iraq June 28, 2017. Islamic State still controls the mosque's grounds and about half of the territory in the Old City, its last redoubt in Mosul.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.