Skip to main content

Market Overview

EU Slaps Google Parent Alphabet With $2.7 Billion Fine

EU Slaps Google Parent Alphabet With $2.7 Billion Fine

Shares of Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) were trading lower by more than 1 percent early Tuesday morning after the company was slapped with a $2.7 billion fine from the European Union.

The EU's antitrust body confirmed in a press release it has fined Google's parent company $2.7 billion for what it believes is unfair treatment of its own search services over its rivals. As a market leader in internet search, Google is giving an unfair and illegal advantage to its own comparison shopping service.

Commissioner Margrethe Vestager, in charge of competition policy, said:

    "Google has come up with many innovative products and services that have made a difference to our lives. That's a good thing. But Google's strategy for its comparison shopping service wasn't just about attracting customers by making its product better than those of its rivals. Instead, Google abused its market dominance as a search engine by promoting its own comparison shopping service in its search results, and demoting those of competitors."

Google operates a comparison shopping service in Europe, now called "Google Shopping," which allows consumers to compare products and prices online and search deals from online retailers of all types. The service started in 2004, and it wasn't until 2008 that Google made a push for its comparison shopping service and made its own comparison shopping service more prominent in search results by higher placements in the results.

Market dominance by itself isn't illegal under antitrust rules, but companies with a market leading position have a responsibility not to abuse their position by restricting competition — whether it be in the market where they are dominant or in separate markets. The company now has nine days to end its abuse or face penalty payments of up to 5 percent of the average daily worldwide turnover of Alphabet.

Related Links:

A Peek Into The Markets: U.S. Stock Futures Decline Ahead Of Fed Speakers, Economic Data

5 Stocks To Watch For June 27, 2017
Image Credit: By Tobias Haase from Hanover, Germany - Google, Mountain View, California, CC BY 2.0, via Wikimedia Commons


Related Articles (GOOG + GOOGL)

View Comments and Join the Discussion!

Posted-In: EU European Union Google Google Antitrust Google EuropeNews Legal Tech Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at