Google Will Face A Major EU Fine In Shopping Services

The EU regulators are looking forward to slam Google or Alphabet Inc. with a significant penalty for the shopping services. The European Union took this decision of charging after a 7 year old investigation. The world’s best search engine giant faced a huge number of complaints from both US and European rivals.

So what was the charge against Alphabet Inc.? The Charge was, the search engine giant distorted the internet results for some of the shopping services. In simple terms, Google manipulated the search results to send traffic to some of its shopping services. Thus, it harmed both rivals organisations and consumers as well.

Probable amount of punishment for Google

At present, both the Commission and Google didn’t make any comment on this issue. The US Company also denied by declaring the regulators ignored competition from online retailers like Amazon and eBay. For the companies who are charged with manipulation of search results can reach up to 10% of the global turnover.

In this case, the charge should be around $9 billion. Previously, Google tried three times to settle the dispute but failed. It was European Commissioner Joaquin Almunia. He didn’t agree to the terms the way the company wanted to resolve the conflict. His successor, Margrethe Vestager too didn’t show any interest in settling the dispute.

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One more allegation

Google/Alphabet Inc. is also charged because of the Android smartphones. The company is using the Android OS to squeeze out the rivals and block the competitors in online search advertisements in the “AdSense for Search” platform.

In this platform, the tech giant acts as an intermediary for websites, online retailers, telecom operators, and newspapers. The commission issued the massive fine for both cases. The committee also warned the search engine giant to stop the alleged anti-competitive practices. It is not clear what measures the company will take to make sure the rivals will get equal treatment.

The regulator might set up general principles or setup specific instructions for Google. In 2013, US Federal Trade Commission settled its web search case with the company where Google had to stop manipulating reviews and other data from rival websites for its products.

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