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Published: Fri, June 30, 2017
Medical | By Garry George

Google Likely to Appeal $2.7 Billion Fine For 'Abusing its Dominance'

Google Likely to Appeal $2.7 Billion Fine For 'Abusing its Dominance'

The commission has given Google 90 days to end its anti-competitive behaviour, which the regulator claims breaches European Union antitrust rules, or else face further fines worth five per cent of parent company Alphabet's daily worldwide earnings for every day after the three-month deadline.

The European Commission said that Google has 90 days to stop its unfair practices or Alphabet shall face a further penalty of up to 5 per cent of it's average daily global turnover. Google has included a number of criteria in these algorithms, as a result of which rival comparison shopping services are demoted.

After a long-running investigation, the European Comission is slapping Google with its biggest antitrust-related fine to date.

Google has indicated it intends to appeal the ruling. "If you shop online, you want to quickly and easily find the items you are looking for. And advertisers want to promote those same products", the company statement said. The EU's antitrust filing states that Google showed users results from Google Shopping "irrespective of merits", which deprived rival price comparison sites of traffic.

"We respectfully disagree with the conclusions announced today", a spokesperson for the company said.

It's understood this is the highest fine of its type ever handed done to a corporation by the European Commission.

Speaking of this accusation, the company was found to use its Android system to suppress rivals, a case which would cause a lot of damage to the company, with its operating system used in smartphones. One of those services that Google created is a comparison shopping service, and it seems that Google has landed into a spot of trouble with the European Union over it.

Google's chief counsel, Kent Walker, said that the search giant would consider appealing the decision. At issue is the fact that sponsored products appear first, and though they are labeled as such, users might have to scroll down to see free results, especially on mobile phones. It has also demoted rival comparison shopping services in its search results.

She has ordered Apple Inc.to repay some 13 billion euros in tax advantages and hit truck makers with a record cartel fine of almost 3 billion euros.

The EU's fine is more than double what had been the bloc's previous record penalty for a company it found had abused its market position-a 1.06 billion euro fine on Intel in 2009.

The Commission did not specify what changes Google had to make.

Even so, any backlash against the Google decision from American industry is likely to be reduced.

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