European Union just fined Google with a huge fine of €2.4 billion (approximately Rs.17588 crores) for breaking the Anti-trust law. According to EU, google favored it’s own Google shopping service on search page results. They said that Google manipulated the search page results to provide advantage to it’s own comparison shopping results.
Google should pay the fine in 90 days for the mis-conduct else 5% penalty will be charged daily on the world-wide turnover of Alphabet (parent company of Google). European regulators said, Google denied both its consumers real choice and rival firms the ability to compete on a same level.
Google fined for breaking the Antitrust law
It does not end here, EU is trying to find what else manipulation google has done to become a dominant player in the European search engine market. EU suggests company to operate on the legal way. However, EU official in charge of competition policy, commissioner Margrethe Vestager considered it as ‘Old School’ type illegality and praised the innovation that google brought by saying :
“Google has come up with many innovative products and services that have made a difference to our lives. That’s a good thing. But Google’s strategy for its comparison shopping service wasn’t just about attracting customers by making its product better than those of its rivals. Instead, Google abused its market dominance as a search engine by promoting its own comparison shopping service in its search results, and demoting those of competitors.
What Google has done is illegal under 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.“
This may not be the end of the case because Google can appeal the ruling. Company has denied EU claims and said that it does not favor it’s own shopping comparison service. Google is already facing two other cases over Google Adsense and it’s relations with Android phone manufacturers.