Google Facing €3bn Antitrust Fine Over Search Advertising
- Monday, May 16th, 2016
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Google could be forced to pay a record antitrust fine of around €3bn (£2.4bn) in the next few weeks for promoting its own shopping services ahead of rivals in search results, in a case that has been in progress since late 2010.
According to The Sunday Telegraph, which cited officials close to the situation, the fine could be announced as early as next month, although the results of the antitrust investigation and the resultant bill have not been finalised.
The case could result in Google being banned from manipulating search results to favour its own content ahead of rivals. Over the course of the past six years, Google has made several attempts to reach a compromise with the European Commission, but the two parties have not been able to agree on terms.
The European Commission can levy fines of up to 10 per cent of a companys annual sales, which in Googles case would result in a fine of over €6.5bn, but the penalty is not expected to be that high. Still, if the predicted €3bn figure is correct, it would still be more than double the previous record for antitrust fines in the EU, which was imposed on Intel in 2009.
Large US tech firms have repeatedly clashed with the European Commission over monopoly and antitrust charges, which are stricter in Europe than in the US. It could mark a significant shift in power when it comes to antitrust investigations, which doesnt bode well for Google, which is also being investigated over monopoly abuses relating to its Android operating system.
Much of the push for the fine has come from Margarethe Vestager, the Competition Commissioner for the EU, who has pursued a much more aggressive campaign against Google than her predecessor, and has raised the possibility of further charges against the search giant in other specialised web markets such as travel information and maps.