European regulators may fine Google for billion dollars fine for this summer for anti-competitive practices related to shopping tools. The antitrust regulators of Europe may place a hefty fine on Alphabet which is Google unit for its shopping service before summer break in August.
The EU move is expected to arrive in coming weeks and will blame Google for making use of its near-monopoly for the online search to direct the customers towards its Google Shopping. According to Financial Times, news publication the company may have to pay huge fine misuse of the Shopping tools.
The exact amount of fine which the company may have to pay is not clear but it is expected that the company may have to pay €1 billion for its anti-competitive behavior.
A similar penalty was handed over to Intel in 2009 and the chipmaker Intel had to pay a penalty of €1bn. In 2016, The European Commission claimed that Google has misused its market presence and redirected customers to its own online shopping platform where price comparison of the product was done. However, the European spokesperson denied saying anything over the issue including the penalty price.
Many big European technology competitors and senior politicians present in Paris and Berlin have advised that Margrethe Vestager takes hard action against an Alphabet-based company. The penalty for the companies who breach the EU antitrust rules can reach 10% of the global revenue and for Google, it may account to $9 billion of its 2016.
The company protected itself saying that the search conducted by the giant search engine have increased the traffic to online shopping sites like Amazon and eBay. Kent Walker, Google’s general counsel said that in past 10 years a massive amount of traffic has drifted from our search pages to popular online sites like eBay and Amazon to Europe which does not indicate that company is only favoring their sites.
The fine will be calculated based on 30% of the Google’s shopping tool revenue which will be multiplied by anti-competitive behavior. The company must draft its future plans for its shopping service and submit it to the commission within the certain time span and if the companies do not do this it may face an additional penalty of 5 percent every day calculated based on average daily turnover.