21 Mar 21.03.2019 Google has just got hit with a third huge antitrust fine by the European Union.
21.03.2019 Google has just got hit with a third huge antitrust fine by the European Union.
Google will have to pay €1.5 billion Euros for abusing its dominant position in online search advertising.
The EU commission is accusing Google of imposing restrictive exclusivity clauses in contracts with third-party websites which prevent Google’s competitors from placing their search adverts on these websites.
Commissioner Margrethe Vestager said that Google (GOOGL) had “cemented its dominance” and “shielded itself from competitive pressure” by imposing contractual restrictions on other websites.
The commission stated that Google has prevented its rivals from being able to “compete & innovate fairly” in the online market. This is illegal under EU antitrust law.
Vestager told reporters that the misconduct lasted for 10 years. The duration was reflected in the size of the fine, she added. Google profits were nearly $31 billion in 2018.
Between 2006 and 2016, with a market share above 70%, Google was the strongest player on online search advertising in the European Economic Area (EEA).
In 2017, the EU fined Google for favouring its shopping platform over competitors. Following that, in July 2018 the Commission ordered the company to pay €4.34 billion for unfairly pushing its apps on smartphone users and thwarting competitors.
The tech company has now been fined €8.2 billion ($9.3 billion) in total by Europe since 2017. Money collected from the fines will be handed to EU member states.