Google Is Facing a Hefty Fine From the EU Over Its Shopping Service

Jun 01, 2017

EU antitrust regulators aim to slap a hefty fine on Alphabet unit Google over its shopping service before the summer break in August, two people familiar with the matter said, setting the stage for two other cases involving the U.S. company.

The European Commission's decision will come after a seven-year investigation into the world's most popular internet search engine triggered by scores of complaints from both U.S. and European rivals.

The EU competition authority accused Google in April 2015 of distorting Internet search results to favor its shopping service, harming both rivals and consumers.

The Commission and Google declined to comment. The U.S. company has in the past rejected the charges, saying that regulators ignored competition from online retailers Amazon and eBay Inc.

Fines for companies found guilty of breaching EU antitrust rules can reach 10% of their global turnover, which in Google's case could be about $9 billion of its 2016 turnover.

Google made three unsuccessful attempts to settle the case with the previous European Competition Commissioner Joaquin Almunia in a bid to stave off a possible fine and a finding of wrongdoing.

Almunia's successor Margrethe Vestager, however, has shown no willingness to settle with Google.

The company has also been charged with using its Android mobile operating system to squeeze out rivals and with blocking competitors in online search advertising related to its "AdSense for Search" platform.

The platform allows Google to act as an intermediary for websites such as online retailers, telecoms operators or newspapers. The Commission has warned of massive fines in both cases.

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