Google has been fined $2.7 billion by the European Antitrust officials after investigating the company for having unfairly favored some of its own services over its rivals. The investigations started after Google was accused of using its popular search engine to lead customers to its own online shopping store, rather than to the sites of other external retailers such as Amazon or eBay.
The hefty fine of 2.4 billion Euros indicates that European officials have taken a strict stance against the company for having engaged in these illegal activities.
The Commission has been known to be overly strict with the so-called Silicon Valley companies and Google is just the latest in a long list of technology companies that have been targeted by the EU officials.
Google will pay $2.7 billion fine to EU
The $2.7 billion fine is now the largest that has ever been levied on a company for distorting the market through unfavorable means. Margrethe Vestager, the EU’s chief of antitrust policies, claimed that EU has become the greatest regulator for the digital service arising from the western world, which includes Silicon Valley.
She claimed that in Europe at least companies have to compete with each other in an honest and transparent way. Google, she said, had conducted its business in an illegal fashion under the rules laid down by the EU antitrust division.
Laying down these rules may mark a more important aspect according to experts.
Some feel that the EU is trying to establish itself as a body which will have some form of control over how the digital industry operates. Although the $2.7 billion is nothing to a company which has an annual turnover of $90 billion, the EU officials have succeeded in making a statement to all such technology companies, which indicates it will not hesitate to hand out penalties to those straying outside its rules.
What Google representatives say?
Google’s general counselor, Kent Walker said the company disagreed with the decision announced on Tuesday, June 27. They were currently in the process of reviewing the verdict and would decide whether to appeal against the hefty amount of fine levied upon the company. Google is also currently facing two separate antitrust charges related to its mobile platform, Android, in Europe.
The EU has not just targeted Google but has previously accused many other major tech companies of having indulged in questionable activities. Vestager herself has previously demanded that Apple pay $14.5 billion in back taxes to Ireland, questioned Amazon’s tax practices in Europe, and also investigated Facebook’s system of gathering and handling data.
