EU hits Google with record $2.7 billion fine
JournalismPakistan.com |
Published 8 years ago
Join our WhatsApp channel
BRUSSELS - European Union antitrust regulators hit Google with a record 2.4-billion-euro ($2.7 billion) fine for favoring its own shopping service, taking a tough line in the first of three probes of its dominance in searches and smartphone operating systems.
It is the biggest fine the European Commission has ever imposed on a single company in an antitrust case, exceeding a 1.06-billion-euro sanction handed down against U.S. chipmaker Intel (INTC.O) in 2009 and goes far beyond what U.S. regulators have ever fined a tech company.
European Union competition chief Margrethe Vestager Tuesday gave Google 90 days to stop favoring its own shopping service in internet searches or face a further daily penalty of up to 5 percent of parent company Alphabet's (GOOGL.O) average daily global revenue.
"Google's strategy for its comparison shopping service wasn't just about attracting customers. It wasn't just about making its product better than those of its rivals. Instead, Google has abused its market dominance as a search engine," she told a news conference.
The fine will be easy for the world's biggest search engine to absorb, but Google must now move fast to satisfy Vestager's concerns while limiting the longer-term hit to its highly lucrative search business. It also leaves other tech companies wondering how far Vestager may go to force U.S. tech giants to concede more ground to smaller competitors.
Vestager has become one of the world’s most combative antitrust regulators with powers to impose multi-billion dollar fines and force companies to make radical changes to their businesses.
Last year, the former Danish economy minister ordered Apple to pay Ireland unpaid taxes of 13 billion euros as it ruled the company had received illegal state aid. Apple is appealing the decision.
The decision is the first of a series of competition rulings that Google faces from the European Commission, which has not shrunk from taking on U.S. tech giants such as Alphabet, which has annual revenues of $90 billion and a market value of $665 billion.
The Commission 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, as it is 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.
Vestager said in a statement that Google had "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."
Google 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.
"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. - Reuters
Don't Miss These
JournalismPakistan launches âOnce Upon a Newsroomâ to preserve the legacy of The Muslim newspaper
November 11, 2025:
JournalismPakistan announces 'Once Upon a Newsroom', a storytelling series celebrating Pakistanâs newsroom heritage, beginning with The Muslim, the now-defunct independent daily from Islamabad.
Pakistani media in turmoil as job cuts, censorship, and silence from unions deepen crisis
November 09, 2025:
Pakistanâs media reels under layoffs, censorship, and union silence as journalists face attacks, fake news, and closures, deepening a nationwide media crisis.
JournalismPakistan unveils new tagline marking global expansion
November 08, 2025:
JournalismPakistan.com launches its new tagline, Linking Journalism Worldwide, reflecting global expansion beyond Pakistan with Asia, World, and Middle East coverage.
Veteran journalist Javed Iqbal Jaidi bids farewell after long health battle
November 08, 2025:
Veteran journalist Javed Iqbal Jaidi passes away in Shorkot after a long illness. Friends remember his humor, humility, and lifelong dedication to journalism.
JournalismPakistan.com launches dedicated Middle East section to deepen regional media coverage
November 07, 2025:
JournalismPakistan.com launches a Middle East section to expand regional reporting. New coverage will follow JPâs editorial SOPsâverification, balanced sourcing, and two-stage review.
Russia slams Pakistanâs Frontier Post for âWestern biasâ; newspaper hits back
November 07, 2025:
Russia accuses Pakistanâs Frontier Post of anti-Russia bias; the paper defends press freedom and independence. A diplomatic clash over media narratives.
Javed Chaudhry signs off from Express News after 18 years on âKal Takâ
November 07, 2025:
Veteran journalist Javed Chaudhry bids farewell to Express News after 18 years on Kal Tak, marking the end of an era in Pakistani television journalism.
Why only Nukta, Mr. Minister? Media workers question government's selective support
November 06, 2025:
Information Minister Attaullah Tararâs job offer to Nukta staff draws criticism as hundreds of journalists across Pakistan face layoffs, salary delays, and job insecurity.