EU Slams $2.7bn Fine on Google Over Alleged Fraudulent Practices

Posted by African Examiner Business News, Featured, IT & Telecoms, Latest Headlines, Technology Tuesday, June 27th, 2017

BALTIMORE, MD (AFRICAN EXAMINER) – US Internet search engine – Google has been slammed with the fine $2.7bn by the European Commission EU over alleged abuse of its power.

Specifically, EU is accusing Google of promoting its own shopping comparison service at the top of search results.

The fine came amidst complaints by many firms across the globe that they were being hit by cyber-attack.

The EU’s fine against the search engine is considered to be the regulator’s largest penalty to date against a company accused of distorting the market.

The ruling also orders Google to end its anti-competitive practices within 90 days or face a further penalty.

Still, Google has hinted it might file an appeal against the fine.

EU further ruled that if the US firm failed to change the way it operates its Shopping service within the three-month deadline, it could be forced to make payments of 5 per cent of its parent company – Alphabet’s average daily worldwide earnings.

Recent financial report claimed about $14m earnings to Google a day.

In what could be considered a soft landing, EU held it would leave Google to determine what alterations should be made to its Shopping service rather than specifying a remedy.

“What Google has done is illegal under EU antitrust rules,” EU’s competition Commissioner Margrethe Vestager declared.

“It has denied other companies the chance to compete on their merits and to innovate, and most importantly it has denied European consumers the benefits of competition, genuine choice and innovation” the EU envoy complained further.

Ms. Vestager added that the decision could now set a precedent that determines how she handles related complaints about the prominence Google gives to its own maps, flight price results and local business listings within its search tools.

In the meantime, Google had suggested that Amazon and eBay have more influence over the public’s spending habits and contended it did not accept the claims made against it.