EU might impose 1 billion euro antitrust fine against Google
European Union might impose a fine of 1 billion Euros against Google over alleged shopping search market abuses.
EU has the authority to fine any company violating rules up-to 10 percent of its gross earnings. Google is approaching a gross earning of 9 billion dollars, but it is not known, how EU has calculated a fine of 1 billion Euros.
EU has alleged Google that Google systematically positions and displays its comparison shopping services on top of its general search results irrespective of its merits. EU also have alleged that Google doesn’t apply the same penalties to its own shopping services, which it applies to competitors and drops their positions downwards. As a result of its systematic favouring, Google Product Search and Google Shopping have grown so rapidly.
Google’s argument is that it always tries to show better answers and useful ads to users’ queries, and its practices are in the benefit of consumers. It claims that what EU is saying - that's not true.
European Union and Google have been working upon the matter to settle since last couple of years, but couldn’t reach the settlement until now.
If the fine is imposed, Google will likely to appeal in European Court of Justice.
Google has the monopoly in search market, and I think that in the name of consumer benefits, Google may leverage its search platform and may try to benefit its own services. So, it's necessary to save the rights of other competitors, and it can be done only by authorities like European Commision.
Thumbs up for European Commission!