European Union fines Google $2.7 billion for antitrust violations

The European Union fined Google $2.7 billion for violation of European competition regulations by favoring its own online services over those of its competitors. Regulator say the search giant was giving preferential treatment to its own online shopping service to the detriment of its rivals’ services. The EU’s charges focused on Google’s advertising products, which regulators say restrict consumer choice. This was the third European investigation into Google’s business practices since early 2015. This is the largest penalty in this type of antitrust case and Google is considering an appeal.

European regulators are at the forefront of consumer protection in the digital age in taking action against anti-competitive behavior of tech giants, which some are calling the new monopolies. These Silicon Valley goliaths have the market power to dominate consumers’ online activity -- and it’s time US regulators catch up with their European counterparts to preserve competition in Internet commerce.

In 2012, Google competitors Yelp and Nextag testified before Congress that the company was unfairly giving their websites low quality rankings, steering Internet users toward Google services. That same year, Google settled charges with the Federal Trade Commission for a mere $22.5 million, a pittance compared with the EU’s fine and Google’s revenue.

Links:

Google Fined Record $2.7 Billion in E.U. Antitrust Ruling (New York Times, June 27, 2017)

Google faces new antitrust charges in Europe, up to $7 billion in fines (Speed Matters, July 29, 2016)

Is data the new oil – and is it time to break-up the new monopolies? (Speed Matters, May 12, 2017)