| Author (Corporate) | European Commission: DG Communication |
|---|---|
| Series Title | Press Release |
| Series Details | IP/17/1784 (27.06.17) |
| Publication Date | 27/06/2017 |
| Content Type | News |
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Background: Market dominance is not, as such, illegal under EU antitrust rules. However, it is considered that dominant companies have a special responsibility not to abuse their powerful market position by restricting competition. The Commission considered Google to have abused its market dominance in general internet search bygiving a separate Google product - initially called 'Froogle', re-named 'Google Product Search' in 2008 and 'Google Shopping' in 2013 - an illegal advantage in the separate comparison shopping market. The fine of €2.42 billion takes account of the duration and gravity of the infringement. Formal proceedings in this case were opened in November 2010, following a number of complaints by European and US competitors. After an initial investigation, Google sought to address the Commission's concerns by offering legally binding commitments. The feedback received from third parties showed these were not effective to fully address the concerns and Google did not submit a revised proposal. Following unsuccessful attempts to solve the issue, two Statements of Objections were released in April 2015 and July 2016, setting out the Commission's preliminary conclusions and a range of additional evidence. Separately, there are two other cases in which the European Commission concluded that Google abused a dominant position and were still at this point being investigated: + the Android operating system, amidst concerns Google stifled choice and innovation in a range of mobile apps and services by pursuing an overall strategy on mobile devices to protect and expand its dominant position in general internet search; + AdSense, where the Commission showed concerns that Google reduced choice by preventing third-party websites from sourcing search ads from Google's competitors.The European Commission announced on 27 June 2017 it had decided to fine Google €2.42 billion for breaching EU antitrust rules. The Commission argued the company had abused its market dominance as a search engine by giving an illegal advantage to another Google product, its comparison shopping service. Google was told to end the conduct within 90 days in order not to face penalty payments of up to 5% of the average daily worldwide turnover of Alphabet, Google's parent company. In a response published later in the day, Google showed its disagreement with the conclusions of the investigation and announced it would review the decision in detail towards a potential appeal. |
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| Source Link | http://europa.eu/rapid/press-release_IP-17-1784_en.htm |
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| Subject Categories | Internal Markets |
| Countries / Regions | Europe |
