Things are not pretty this morning for tech giant Google, as the European Union has issued a hefty fine of $2.7 billion.
According to European Commission for Competition, the fine was administered because Google has given “an illegal advantage” to itself over its competitors. As Google holds a 90 per cent market share in Europe’s online searches.
Commissioner Magrethe Vestager, said Google has “abused its market dominance as a search engine” because it has “denied other companies the chance to compete.”
When users surf the internet for goods through Google’s search engine, they are more likely to encounter results from its “own comparison shopping centre services,” said Ms. Vestager in a tweet.
Most importantly, she said Google’s market strategy for comparison shopping has prevented consumers from access to genuine choices when they shop using its search engine. The commission says this is illegal under the EU’s fair play laws. As a result of this, Google has been given 90 days to give “equal treatment” to its competitors, or suffer the consequences of penalty fines.
Kent Walker, Google’s senior vice president and general counsel said in a statement released Tuesday, that they “respectfully disagree with the conclusions announced” by the commission.
He also said Google’s ability to efficiently provide users what they want is “the result of hard work and constant innovation.”
Google said it will “review the commission’s decision in detail” as they consider an appeal.