The European Union has punished Google with a record $ 2.42 billion for abusing the Dominant Position on the market, namely because of the abuse of their browser's domination to create their own online shopping service at the expense of competing services, Guardian writes. The EU regulatory authorities have given the renowned company 90 days to stop illegal activities or face a new punishment of up to 5% of their daily revenue from their roof company Alphabet.
Google abused its dominant marketplace position
Google has changed our lives with a multitude of innovative products and services.
However, despite its benefits on society, Google's strategy for its online shopping service did not just rely on a better product quality compared to their competitors' in order to attract customers. Instead, Google took advantage of its dominant marketplace position in the search engine by promoting its own online shopping service and degrading its competitors in search results.
"What Google has done is illegal to 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," Margrethe Vestager said, Commissioner for Competition, in her explanatory statement.
Google has announced that they will appeal the decision.
Not a first case detected
This case has been stretching since 2010, and several people recently told Reuters that it is likely that the EU will make such decision. Namely, they said they believe that after three unsuccessful attempts to compromise over the past six years, Google has no plans for new settlement unless the EU regulators change their position.
Intel's chip maker for 2009 has already paid the highest punishment for monopoly behavior - 1.1 billion euros. The Commission has punished another US giant, Apple, a little less than a year ago, with 13 billion euros due to the use of unjustified tax benefits granted by Ireland. This thirteen billion fine Apple has to pay into the Irish budget.
Google must apply the same procedures and methods for positioning and displaying competitive price comparison services on Google pages with the search results it applies for its price comparison service. Google's sole responsibility is to ensure the fulfillment of the terms and explain how it intends to do so. Regardless of the option chosen by Google, the Commission will closely monitor compliance with the terms and obligations of Google to notify the Commission of its activities (beginning within 60 days of the decision and then in the periodic reports).
