Sidebar

Exclusive Reports

16
Thu, May

Trending Now
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

EU antitrust body the European Commission hit Google with a record 2.42 billion euro fine after it ruled that the company had abused its power by promoting its own shopping comparison service at the top of the search.

According to Reuters the European Commission said the world’s biggest and most popular internet search engine has 90 days to stop favouring its own shopping service or face a further penalty per day of up to 5 per cent of Google’s average daily turnover.

The EU competition watchdog has also charged Google with using its Android mobile operating system to crush rivals, a case that could potentially be the most damaging for the company, with the system used in most smartphones.

The company has also been accused of blocking rivals in online search advertising.

The Commission found that Google, with a market share in searches of over 90 percent in most European countries, had systematically given prominent placement in searches to its own comparison shopping service and demoted those of rivals in search results.

"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," European Competition Commissioner Margrethe Vestager said in a statement.

The European Commission has been investigating Google Shopping since late 2010.

The probe was spurred on by complaints from Microsoft, among others.

The rival tech giant has opted not to comment on the ruling, after the two struck a deal last year to try to avoid such legal battles in the future

Google has denied any wrongdoing and said its data showed people preferred links taking them directly to products they want and not to websites where they have to repeat their search.

In a statement the search giant noted that it may appeal the ruling. "We respectfully disagree with the conclusions 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," Kent Walker, Google's general counsel, said in a statement.

BLOG COMMENTS POWERED BY DISQUS