Google issued with record multibillion dollar fine

Sundar Pichai
Google CEO Sundar

30 June, 2017

The commission's decision, following a seven-year investigation into Google's dominance in searches and smartphones, suggests the company may need to fundamentally rethink the way it operates.

As the European Union official in charge of competition policy, commissioner Margrethe Vestager, spelled out the case against Google, she denied accusations that Brussels had a bias against United States firms, claiming the tech giant had been guilty of an "old school" form of illegality. Google has 90 days to rectify the issue, or else it will face fines equivalent to 5 percent average daily worldwide turnover of Alphabet, Google's parent company.

According to the report, Google rigged the search results to benefit its product comparison service Google Shopping.

The European Union on Tuesday slapped technology giant Google with a record fine of 2.42 billion euros or $2.7 billion for breaching European Union (EU) antitrust rules by abusing the monopoly it enjoys over internet search.

Silicon Valley may have been dealt a serious blow by the European Commission's decision to serve Google a historic $2.7 billion antitrust fine.

As part of parent firm Alphabet, Google could have been slapped with a charge of up to $9 billion USA based on its 2016 turnover.

"When you shop online, you want to find the products you're looking for quickly and easily", Walker said. "Advertisers also want to market those same items, which is why Google displays these ads", Google said in reply to the conviction.

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"We think our current shopping results are useful and are a much-improved version of the text-only ads we showed a decade ago". 'We will review the Commission's decision in detail as we consider an appeal, and we look forward to continuing to make our case'.

Walker said the search results displayed by the company are "the result of hard work and constant innovation, based on user feedback". She said hundreds of companies, including some based in the USA, complained about the way Google displayed its shopping service.

The European Commission has handed down a staggering €2.4 billion fine in one of its antitrust probes against Alphabet subsidiary Google.

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

European Union regulators fined Google almost $3 billion Tuesday because of the company's alleged anticompetitive dominance as a search engine.

Her move against Google risks attracting further criticism that she's unfairly singled out USA companies. Google is considering an appeal.

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