Published: Wed, June 28, 2017
Money | By Armando Alvarado

European Commission Slaps A 2.4 Billion Euro Fine On Google

European Commission Slaps A 2.4 Billion Euro Fine On Google

The penalty payment for failure to comply would amount to around $12 million a day based on Alphabet's 2016 turnover of $90.3 billion.

World's leading technology company, Google has been fined 2.42bn euros ($2.7bn; £2.1bn) by the European Union (EU) after it ruled the company had abused its power by promoting its own shopping comparison service at the top of search results.

The second pertains to AdSense, Google's advertising tool.

Google said it was reviewing the decision and considering an appeal.

European regulators say "Google has abused its market dominance as a search engine by giving an illegal advantage to another Google product, its comparison shopping service".

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The company has also been ordered to cease its behavior with regard to its comparison shopping service within 90 days or face additional fines of up to five percent of parent company Alphabet's worldwide daily revenues.

Margrethe Vestager, a commissioner responsible for competition policy, said: "Google has come up with many innovative products and services that have made a difference to our lives". Instead, Google has abused its market dominance as a search engine by promoting its own comparison shopping service in its search results, and demoting those of competitors. "This has deprived European consumers of the benefits of competition on the merits, namely genuine choice and innovation". It's the biggest fine ever handed to a single company in an European Union anti trust case, beating a almost €1.1bn penalty that U.S. chipmaker Intel was forced to pay back in 2009. "This decision means consumers receive comparison shopping results that offer genuinely the best purchasing options", said Thomas Vinje, a lawyer for FairSearch, a group of companies that complained to the EU.

"Thousands of European merchants use these ads to compete with larger companies like Amazon and eBay". "We respectfully disagree with the conclusions announced today", a Google spokesperson said. She said hundreds of companies, including some based in the USA, complained about the way Google displayed its shopping service. "But at a high level, our instinct is that the EC's action could create a pro-Google, circle-the-wagons mindset among Team Trump - the idea being that Trump isn't necessarily a huge fan of Google, but it is an American champion company whose principal regulator should be the US not the EC".

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.

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