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Google 'faces' record EU fine for abusing its search engine dominance

Google is reportedly facing a record-breaking fine from EU which could exceed $1 billion.

India TV Tech Desk, London [ Published on: June 17, 2017 12:47 IST ]
Google faces record EU fine for abusing its search engine
Google faces record EU fine for abusing its search engine dominance

Search engine giant Google is facing a record-breaking fine in excess of $1 billion from the European Union for manipulating its search engine results to favour its new shopping service, reports said. The fine is expected to be larger than the $1.2 billion financial penalty which was imposed on Intel in 2009 for abusing the antitrust laws. 

According to a report in The Guardian, EU officials are expected to announce in the coming weeks that the tech giant has been guilty of abusing its market dominance.

The sanction would follow a seven-year investigation by the Brussels. In July last year, the EU had reiterated that the search giant had “abused its dominant position by systematically favouring its comparison shopping service in its search result pages”.

Goggle Shopping service offers price comparisons on products.

Paris and Berlin-based senior politicians and Google's competitors, have been encouraging the European commission's competition commissioner Margrethe Vestager to take a tough action against the search engine.

"A financial sanction for abuse of a monopoly position in the EU is capped at a maximum of 10 per cent of the total revenues of the company involved. Google's parent company Alphabet had reported $90 billion revenue last year. 

Google will be required to propose how it intends to build its shopping business in future and if it fails to agree a deal with the commission in set time period, the company could be fined up to 5 per cent of average daily turnover for each day of delay.

Another investigation considers if Google has unfairly banned competitors from websites that used its search bar and adverts. 

It is also being examined how Google pays and limits mobile phone providers who use its Android software and Play app store. 

"The decision from the regulator would, however, open the way for shopping comparison competitors or customers to file damages claims against Google," the report added.

European regulators have in past investigated Microsoft, Intel, Apple, Google, Facebook and Amazon raising claims that Brussels is waging war against Silicon Valley, but the the claim has been denied by the commission.

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