The European Union has fined Google a record €2.42bn (£2.14bn) for abusing its dominance of the search engine market to promote its own comparison shopping service. The European Commission ruled that the tech giant illegally manipulated search results to favour its own service, denying consumers genuine choice and hindering competition.
Margrethe Vestager, the EU competition commissioner, stated that Google's strategy was not about making a better product but about abusing its market dominance. She said the company promoted its own shopping service while demoting those of rivals, which is illegal under EU antitrust rules. Google has 90 days to cease its illegal practices or face daily fines of up to €10.6m.
The decision follows a seven-year investigation and has significant implications for Google's operations in Europe. The company is also now vulnerable to civil damages claims from any affected parties. Google has rejected the findings and signalled its intention to appeal, indicating a lengthy legal battle ahead.
Vestager dismissed accusations of bias against US firms, describing Google's actions as an 'old school' form of illegality. The EU is also investigating other potential abuses by Google, including in maps, images, and local services. Shares in Alphabet, Google's parent company, fell 1.5% in pre-market trading following the announcement.
