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Record fine for Google in anti-trust case
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28th June 2017
Google has been fined 2.42bn euros (£2.1bn) by the EU Competition Commission after it ruled the company had abused its market power by promoting its own shopping comparison service at the top of Google search results. 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. That fine would be in excess of Euro 12 million per day!
Shares in Google parent firm Alphabet fall after record EU fine 📉https://t.co/3j5JajK6uR pic.twitter.com/NJuJJxAoND
— BBC News (World) (@BBCWorld) June 27, 2017
Here is the ruling from the EU Competition Commission:
"Google has come up with many innovative products and services that have made a difference to our lives. That's a good thing. But Google's strategy for its comparison shopping service wasn't just about attracting customers by making its product better than those of its rivals. Instead, Google abused its market dominance as a search engine by promoting its own comparison shopping service in its search results, and demoting those of competitors.
What Google has done is illegal under EU antitrust rules. It denied other companies the chance to compete on the merits and to innovate. And most importantly, it denied European consumers a genuine choice of services and the full benefits of innovation."
The crucial point is that market dominance is not illegal under EU antitrust rules. However, dominant companies have a special responsibility not to abuse their powerful market position by restricting competition, either in the market where they are dominant or in separate markets.
The European Union just fined Google $2.7 billion. And that might not even be the worst news https://t.co/sQQEiy925I
— WIRED (@WIRED) June 27, 2017
This woman makes corporate America tremble - and now she's handed Google a record fine https://t.co/gjXw5V5e9p pic.twitter.com/NzRdo5vykE
— Bloomberg (@business) June 28, 2017
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