Google fined $2.7 billion for breaking EU "Fair Play" rules

  • Google fined $2.7 billion for breaking EU

Google fined $2.7 billion for breaking EU "Fair Play" rules

Matt Stoller, a fellow at New America's Open Markets Program, responded by saying that the EU's decision to take action against Google provides a stark contrast to the inaction of American regulators, who have in recent years done relatively little to prevent large companies from merging and drowning out competitors.

The company has also been accused of blocking rivals in online search advertising. European politicians have called on the EU to sanction Google or even break it up while USA critics claim regulators are targeting successful American firms. It denied other companies the chance to compete on merit and to innovate. "And most importantly, it denied European consumers a genuine choice of services and the full benefits of innovation".

This is the biggest fine for a single company in an European Union antitrust case, exceeding a 1.06-billion-euro sanction handed down to US chip maker Intel in 2009. The company also defended the way it handles online shopping, saying that it connects users with advertisers "in ways that are useful for both". And advertisers want to promote those same products.

"Google has become a short cut to buying, not a short cut to saving money", said Benjamin Glaser, features editor of DealNews, a comparison shopping site. "We will review the Commission's decision in detail as we consider an appeal, and we look forward to continuing to make our case", Kent Walker, Google's general counsel, said in a statement.

However, does Amazon go out and sue Google just because its search ads are below Google's own special search box for Google-partnered products?

The EC has said that Google must "end the conduct" within 90 days or face penalty payments of up to 5% of the average daily worldwide turnover of Alphabet, Google's parent company.

Shares in Alphabet dropped by 1.2% in premarket trading. With more than 500 million residents, the 28-nation bloc has more consumers than the United States. In the U.K., Kelkoo and Foundem are among companies that stand to gain from a formal ruling from the EU. It is the biggest fine the European Commission has ever imposed on a single company in an antitrust case, exceeding a 1.06-billion-euro sanction handed down against USA chipmaker Intel in 2009 and goes far beyond what US regulators have ever fined a tech company.

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

The European Commission for Competition said in a statement on Tuesday, that the fine was administered because Google has given "an illegal advantage" to itself over its competitors.

To avoid more pain in Europe, Google will have to change the way it does business in the region.