Google hit with record €2.4 billion EU fine for promoting own shopping service in search results

European Union Commissioner for Competition Margrethe Vestager says Google has 'abused its market dominance'
AP
Tom Powell27 June 2017

Google has been hit with a record £2.1 billion fine by the European Commission for promoting its own shopping service in search results.

The EU regulator issued its biggest penalty to date (€2.42 billion) after ruling that the web giant had breached antitrust rules.

The European Commission said Google had abused its market dominance as a search engine by handing an "illegal advantage" to its comparison shopping operation.

In a statement, commissioner Margrethe Vestager said: "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."

The European competition watchdog has fined Google 2.42 billion euros
PA

As well as the fine, the ruling also orders Google to end the practice within 90 days or face a further penalty.

The watchdog launched an investigation into Google Shopping seven years ago amid complaints it gave the service a prominent position on the internet search engine, while rival services were demoted.

Google's shopping services appear at the top of search results, pushing everything else down the page, but with a "sponsored" label marking them out.

Google now has 90 days to stop the practice or face a penalty of up to 5% of the average daily turnover of the firm's parent company, Alphabet.

Ms Vestager added: "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."

A Google spokesperson responded: "When you shop online, you want to find the products you're looking for quickly and easily," a spokesman said in response to the ruling.

"And advertisers want to promote those same products. That's why Google shows shopping ads, connecting our users with thousands of advertisers, large and small, in ways that are useful for both.

"We respectfully disagree with the conclusions announced today. We will review the Commission's decision in detail as we consider an appeal, and we look forward to continuing to make our case."

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