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Google Hit With Record EU Fine Over Shopping Service - Science/Technology - Nairaland

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Google Hit With Record EU Fine Over Shopping Service by megafem1: 2:42pm On Jun 27, 2017
Google has been fined 2.42bn euros
($2.7bn; £2.1bn) by the European
Commission after it ruled the company had
abused its power by promoting its own
shopping comparison service at the top of
search results.
The amount is the regulator's largest penalty
to date against a company accused of
distorting the market.
The ruling also orders Google to end its anti-
competitive practices within 90 days or face
a further penalty.
The US firm said it may appeal.
However, if it fails to change the way it
operates the Shopping service within the
three-month deadline, it could be forced to
make payments of 5% of its parent
company Alphabet's average daily
worldwide earnings.
Based on the company's most recent
financial report, that amounts to about
$14m a day.
The commission said it was leaving it to
Google to determine what alterations should
be made to its Shopping service rather than
specifying a remedy.
"What Google has done is illegal under EU
antitrust rules," declared Margrethe
Vestager, the European Union's Competition
Commissioner.
"It has denied other companies the chance
to compete on their merits and to innovate,
and most importantly it has denied
European consumers the benefits of
competition, genuine choice and
innovation."
Ms Vestager added that the decision could
now set a precedent that determines how
she handles related complaints about the
prominence Google gives to its own maps,
flight price results and local business listings
within its search tools.
Google had previously suggested that
Amazon and eBay have more influence over
the public's spending habits and has again
said it does not accept the claims made
against it.
"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."
Fast growth
Google Shopping displays relevant products'
images and prices alongside the names of
shops they are available from and review
scores, if available.
The details are labelled as being
"sponsored", reflecting the fact that, unlike
normal search results, they only include
items that sellers have paid to appear.
On smartphones, the facility typically
dominates "above-the-fold" content,
meaning users might not see any traditional
links unless they scroll down. For more detail www.bbc.com/news/technology-40406542

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