• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50

3

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50

3

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
Tech

Google’s Record EU Antitrust Fine Could Be the First of Many

By
Geoffrey Smith
Geoffrey Smith
Down Arrow Button Icon
By
Geoffrey Smith
Geoffrey Smith
Down Arrow Button Icon
June 27, 2017, 12:06 PM ET

The European Union’s 2.42 billion euro ($2.7 billion) fine on Google for abuse of its dominant position in the search market is a big number in its own right. But Google’s final tab could well end up being much higher.

The biggest source of concern for Google, or rather its parent company Alphabet, right now is that this is only the first of three antitrust cases that the EU has open against the company. It is investigating whether Google abused its ownership of the Android operating system to harm designers of apps that rival its own, and it’s also accusing Google of stopping competition in search ads.

Read: Google Hit With Record $2.7 Billion Fine in EU Antitrust Case

In all three cases, Google has a dominant market position, and Android and search ads each generate more revenue for Alphabet than the Google Shopping service that was the focus of today’s ruling. If Competition Commissioner Margrethe Vestager, who is responsible for policing antitrust issues in the EU, takes an equally hard line on the other two cases, she could end up choking more important sources of cash for the company.

The second way for Google’s liabilities to escalate is if it chooses to challenge today’s ruling, or can’t find an acceptable fix within 9o days. The EU’s decision requires Google to find a way to treat competing shopping products equally with Google Shopping. If it doesn’t, it becomes liable for non-compliance penalties of up to 5% of Alphabet’s daily revenue under European law. This, of course, would come on top of the many millions of dollars Google has spent over the last decade vainly trying to address the Commission’s concerns.

Read: Why Ireland Doesn’t Want Apple’s Money Back

A further red flag, not just for Google but for other tech giants such as Amazon and Apple, is the Commission’s sensitivity towards “network effects,” the phenomenon by which services such as Google’s search engine and ad business, or Facebook’s social media platform become ever more effective the more people use them. Network effects are a core part of the business strategy of Internet companies (the Internet is all about bringing people together, after all). But to an antitrust regulator like Vestager, they create “high barriers to entry” for competitors, and ultimately reduce consumer choice. A successful network effect has antitrust liability baked into its DNA. The Commission’s findings, released Tuesday (and based on 1.7 billion search queries) suggest that Google’s active discrimination against other price discovery sites cost them up to 92% of their traffic.

““This decision is a game-changer,” said Monique Goyens, head of the Brussels-based consumer watchdog BEUC. “The Commission confirmed that consumers do not see what is most relevant for them on the world’s most used search engine but rather what is best for Google.”

Companies such as Amazon, Apple and Facebook, which have taken to leveraging new products off a dominant core business such as e-commerce, smartphones or social media, may well find themselves facing similar problems. Given past clashes over tax planning and customer data retention (Vestager’s department is still sore at being misled by Facebook over its access to WhatsApp users’ data), they don’t start from the best position.

It’s not clear whether the U.S. government will be anywhere near as keen to intervene on this issue as it was last year when Vestager ordered Apple to repay over $14 billion in illegal state aid from Ireland out of its offshore cash pile. In the Apple case, the U.S. Treasury was losing money that it hoped to tax one day. Here, although the case will add to the suspicion of anti-U.S. bias in Europe, it is essentially just another angle to a trade relationship that has become chilly under the presidency of Donald Trump.

Google has spent a lot of time and money over recent years explaining why the EU’s case was flawed, but it was eye-catchingly terse Tuesday. General Counsel Kent Walker said in a brief five-sentence statement that “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.”

About the Author
By Geoffrey Smith
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

w
Environmentclimate change
The asphalt industry has a heat problem — and cities are running out of patience
By Aya Diab, Alexa St. John and The Associated PressMay 23, 2026
10 hours ago
SpaceX’s third-generation Starship, which NASA may use to put astronauts on the moon, makes debut in test flight ahead of blockbuster IPO
InnovationSpaceX
SpaceX’s third-generation Starship, which NASA may use to put astronauts on the moon, makes debut in test flight ahead of blockbuster IPO
By Marcia Dunn and The Associated PressMay 23, 2026
12 hours ago
Is a college degree still worth it? Here are 3 things it can teach you that AI can’t do
Future of WorkColleges and Universities
Is a college degree still worth it? Here are 3 things it can teach you that AI can’t do
By Jake AngeloMay 23, 2026
13 hours ago
Ashley Yetman
Commentarydisruption
Everyone is blaming AI for the death of ‘craft.’ Take a good look in the mirror
By Ashley YetmanMay 23, 2026
15 hours ago
Josh Smith, founder of Montana Knife Company.
SuccessEntrepreneurs
This 39-year-old quit his lineman job during the pandemic and built a $50 million company in his backyard
By Nick LichtenbergMay 23, 2026
15 hours ago
Jon McNeill
SuccessCareers
Former Tesla president shares the secret to success he learned from his former boss, Elon Musk: ‘He demands to only work with world-class talent’
By Preston ForeMay 23, 2026
16 hours ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
2 days ago
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
Success
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
By Preston ForeMay 22, 2026
1 day ago
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
Success
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
By Emma BurleighMay 22, 2026
1 day ago
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
AI
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
By Jake AngeloMay 22, 2026
1 day ago
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
4 days ago
Current price of oil as of May 22, 2026
Personal Finance
Current price of oil as of May 22, 2026
By Joseph HostetlerMay 22, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.