The internet is one of the most important commodities of the current age, with individuals accessing it daily from numerous sources. In fact, 50% of mobile phone users use their devices as their primary internet source. And one of the most important features of the internet is the search engine, the largest and most popular being Google.
But Google has been dealt a large blow recently, with the EU leveling a $2.7 billion anti-trust against it for manipulating its search results against its competitors.
This is the largest antitrust penalty ever issued by the European Commission (EC), and Google has 90 days to give “equal treatment” to its competitors in its search results. This could have far-reaching consequences for its operations in Europe.
However, experts say it could take years for the issue to be fully resolved.
The EC’s investigation comes from a 2010 complaint by rival shopping services, who claimed that Google’s search engine promoted its own shopping comparison product over the competitors.
The EC announced on Tuesday that this was indeed an “illegal advantage,” and that Google had “abused its market dominance.”
Commissioner Margrethe Vestager voiced her opinion on the matter clearly:
“What Google has done is illegal under EU antitrust rules. It denied other companies the chance to compete on the merits and to innovate. And most importantly, it denied European consumers a genuine choice of services and the full benefits of innovation.”
Google tried to appeal the decision, disputing the EC’s ruling in a blog post following the trial. It argued that Google Shopping, the service in question, displays images and links for products at the top of the search results. That is more useful for consumers, not Google itself.
Kent Walker, Google’s Chief Counsel, tried to explain what Google Shopping’s results do, attempting to get the decision rescinded.
“When you use Google to search for products, we try to give you what you’re looking for,” he said. “Our ability to do that well isn’t favoring ourselves, or any particular site or seller — it’s the result of hard work and constant innovation, based on user feedback.”
Walker also cited that Amazon was a “formidable competitor” in the online shopping space and that accusations of being a monopoly were untrue in that case. He also went on to say that Google is considering filing an official appeal.
The appeal could stretch this legal battle out for years to come before the matter is fully resolved. The ruling, however, could form the basis for civil lawsuits from other competing services, creating future legal problems for Google.
