Google suffers $ 2.7 billion penalty for breaking EU antitrust laws

Following an investigation by the European Union on Google which had lasted for 7 years, Google has been charged with an exorbitant fine of € 2.42 billion ($ 2.7 billion) for breaking antitrust law. This disciplinary action was taken after an algorithmic search into the company which led to the finding that Google had “abused its dominant position by systematically favoring its own shopping comparison service”.

For the records, this is the highest fine imposed by the European union for violating the antitrust law which is about € 1.42 billion above the fine imposed on Itel in 2009 (€ 1 billion fine). Google is already undergoing probes for its systematic favoritism on Google shopping. Such suspected favorite was said to have been orchestrated by Google when it ran a program in its search engine which helped to deliver results which are on their list and thereby limiting other favorable and more qualified competitors.Given the fact that Google is most dominant in Europe, the European Union is of the opinion that they should not deprive other competitors from competing.

This was reported in a press statement by EU competition commissioner, Margrethe Vestager “Many innovative products and services that have made a difference to our lives.” “the company also abused its market dominance as a search engine by promoting its own comparison shopping services in its search results and demoting those competitors.”
According to vestager, “what Google has done is illegal under EU antitrust rules also, it denied other companies the chance to compete on merits and to innovate. And most importantly, it denied European consumer a genuine chance of services and the full benefits of innovation.”

With respect to this judgment, Google will have no choice other than “comply with the simple principle of giving equal treatment to rival comparison shopping services and its own services.” Else, a daily penalty of about 5 percent of its average daily turnover would be imposed on them.

Despite the accusations Google has received, we can’t take out Google’s immense contribution to the innovations of products and services which actually caused a great difference in the lives of people.

In a statement released by the company, stating its disagreement with the EU commissions. “We respectfully disagree with the conclusion announced today. We will review the commission’s decision in detail as we consider an appeal, and we look forward to continuing to make our case.”

The US business world has accused the EU of ill treatment towards the American tech companies. Looking at the past 7 years from 2010 to 2017, 15 percent of its judgment on antitrust law has hit US companies, while approximately two third have been targeted on European Companies. As part of such which forced Apple to pay Ireland € 13 billion back taxes.

It should also be known that Google is still under on an ongoing investigation for its Adsense business, also its deals it signed with android phone manufacturers.

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