|EC hits Google with record 2.42 billion EUR fine|
|By Thom Holwerda on 2017-06-27 10:03:54|
The European Commission has fined Google €2.42 billion for breaching EU antitrust rules. Google has abused its market dominance as a search engine by giving an illegal advantage to another Google product, its comparison shopping service.
The company must now 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.
The two core offences as noted by the European Comission are as follows:
From 2008, Google began to implement in European markets a fundamental change in strategy to push its comparison shopping service. This strategy relied on Google's dominance in general internet search, instead of competition on the merits in comparison shopping markets:
As a result, Google's comparison shopping service is much more visible to consumers in Google's search results, whilst rival comparison shopping services are much less visible.
Much like Apple's and Ireland's illegal tax deal, fines like this can be easily avoided: respect the laws regarding doing business in the EU. I don't expect the current (or the previous, for that matter) US administration to keep these incredibly powerful tech giants in check, so I guess it's up to the EU.
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