Google expected to be punished by the European Union for anticompetitive shenanigans, but it didn’t expect a slap this hard: €2.42 billion, the largest fine on record. The company says it “respectfully disagrees” with both the ruling and the amount and may appeal.
The commission believes it has struck a blow for consumers and for little firms at a time when online advertising – particularly on mobile phones – is dominated by Google and Facebook.
Google believes the regulator has a weak case and has failed to provide evidence that either consumers or rivals have been harmed.
In essence, it sees this as a political move rather than one based on competition law. You can be pretty confident that the Trump administration will share that view.
There’s mounting anxiety in European capitals about something called Gafa – Google, Apple, Facebook and Amazon – the four American giants that play such a huge role in all of our lives.
That means we can expect further action to try to limit their powers, with the potential for growing political tension between Brussels and Washington.
Google abused its dominance of search to promote its own shopping services, the European Commission wrote, systematically shutting out competitors, distorting the market and hurting local shoppers.
Since the beginning of each abuse, Google’s comparison shopping service has increased its traffic 45-fold in the United Kingdom, 35-fold in Germany, 19-fold in France, 29-fold in the Netherlands, 17-fold in Spain and 14-fold in Italy.
Following the demotions applied by Google, traffic to rival comparison shopping services on the other hand dropped significantly. For example, the Commission found specific evidence of sudden drops of traffic to certain rival websites of 85% in the United Kingdom, up to 92% in Germany and 80% in France