Linked by Thom Holwerda on Tue 27th Jun 2017 10:03 UTC

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:

  • Google has systematically given prominent placement to its own comparison shopping service: when a consumer enters a query into the Google search engine in relation to which Google's comparison shopping service wants to show results, these are displayed at or near the top of the search results.
  • Google has demoted rival comparison shopping services in its search results: rival comparison shopping services appear in Google's search results on the basis of Google's generic search algorithms. Google has included a number of criteria in these algorithms, as a result of which rival comparison shopping services are demoted. Evidence shows that even the most highly ranked rival service appears on average only on page four of Google's search results, and others appear even further down. Google's own comparison shopping service is not subject to Google's generic search algorithms, including such demotions.

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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EU is really messed on this
by jonsmirl on Tue 27th Jun 2017 12:12 UTC
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Google shopping is a minor piece of Google. Personally I never use it. I doubt that Google has anywhere near 2.42EUR revenue from this product and certainly not 2.42EUR in profits from it. It is really messed up when the fine can take all of your profits from an area plus even more on top of that.

I suspect if Google was offered the deal to simply drop the Google shopping product in exchange for dropping the suit, I believe they'd just get rid of the product.

On top of this the complaint misses the mark, the dangerous, potential monopolies are from Amazon and Alibaba, not Google shopping.

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