Articles Tagged with Google antitrust

anitrustIn its third largest European Union antitrust penalty in the last two years, Google was fined 1.49 billion euros or $1.7 billion USD. This penalty, in particular, involves Google using its power to control the flow and pricing of search adverts from 2006 to 2016. This also marks 10 years of regulatory battles fought between Europe and Alphabet-owned Google. Specifically, the findings were that Google abused its dominance to stop websites using brokers other than AdSense. AdSense lets Google act as the middleman between advertisers and website owners. Google is appealing the fine.

These illegal practices in search advertisement brokering has led Google to pay 1.29% of its 2018 turnover.  Google is preventing publishers from placing any search adverts from competitors on their search results. This, in turn, allowed Google to gain advert spaces on the pages that were more lucrative while also making sure they gave approval before any changes to rival adverts were made. The main issue is that as site owners and advertisers were given fewer options and forced to pay higher prices, the financial burden would be passed on to consumers.

At a news conference following the ruling Margrethe Vestager, the European Competition Commissioner, said: “Today’s decision is about how Google abused its dominance to stop websites using brokers other than the AdSense platform.”.

The European Commission has fined Google’s parent, Alphabet Inc. $2.71 billion for allegedly favoring its own comparison shopping service in search results. The antitrust decision related to Google’s online shopping service, which the European Commission the executive arm of the European Union, said had received preferential treatment compared with those of rivals in specialized search results.

Google is already considering an appeal, but if the decision is upheld it will force Google to change the way is presents search results in Europe. By artificially and illegally promoting its own price comparison service in searches, Google denied both its consumers real choice and rival firms the ability to compete on a level playing field, European regulators assert.

According to the ruling, Google has 90 days to stop its illegal activities and explain how it will reform its ways or face fines of up to 5% of the average daily worldwide turnover of its parent company Alphabet. Based on the company’s most recent financials, that amounts to about $14m a day.