EU Fined Google a Record €2.4 Billion for Manipulating Search Results. After seven years of research, Brussels is out. The European Commission charges Google’s online giant a fine of 2.42 billion euros because the company is driving the search results of its own Google Shopping.
This is what Euro Commissioner Margrethe Vestager (Competition) announced today. It is the highest penalty ever given by the European Commission for abuse of power.
Unfair Competition
Vestager delivers the record fine because Google places the results of its own Google Shopping service at the top of the search results, as opposed to the services of competitors. This means that the internet giant earns a lot more money because it includes a commission for each product sold.
“What Google has done is not allowed in Europe,” says Vestager. “It made other companies have the opportunity to compete and innovate. And most importantly, European consumers are depriving a right choice in services.”
Earlier, the Dutch comparison said that Google Shopping has unfair competition: “Compared with the period before Google started shopping, we have now halved in visitor numbers,” said Keo Verpalen.
Reply to Google
Google said earlier that it can not be found in Vestager’s allegations and that the charges are “wrong and unfounded.” The company has not yet responded to the fine.
“We have shown that our enhanced ads are useful to users and sellers. We have never compromised the quality or relevancy of the information we’ve shown. On the contrary, we’ve made it better. That’s not” exciting “- that’s listening To our customers, “so Google wrote in a comment.
It is likely that Google will fight the finale, which is liable to be a long-term legal battle between the company and the European Commission.
Vessel is not Finished Yet
But the stock is still not complete for Google. Vestager still investigates alleged abuse of power by Google in two other cases.
Accusation # 2: Android
Rejects accused Google in April again of abuse of power: this time with Android. The internet giant would abuse its dominant position by forcing manufacturers to deliver a set of Google apps, like Chrome and Search, with their devices.
If they do not, they will not be able to access the Google Play app store. This makes a mobile device unusable for the average consumer.
Accusation # 3: Ads
In the third accusation, Verstager focused on the company’s lucrative advertising business. It is expressly AdSense, a Google service that allows website owners to run third-party ads on their site.
In the standard AdSense contracts, Google has included clauses that violate the competition law, the Commission proposes. Google would oblige companies, among other things, not to show ads of competing services.
For which case Google will be fined, it will further the interplay between Europe and the United States. In Silicon Valley and Washington DC, the feeling is that the EU mainly tackles US companies too hard.