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Archive for June, 2017

27
Jun

Google slammed with record fine by European Union

Justice:

Google’s record-breaking 2.4 billion-euro ($2.7 billion) European Union fine could end up being just a fraction of the costs from the EU’s demand that it stop skewing search results to favor its own shopping site.

While the penalty will barely make a dent in its $90 billion cash hoard, Google faces the prospect of less ad revenue and a regulatory backlash targeting other services from maps to restaurant reviews as well as the threat of even more penalties.

The search-engine giant will have “the sword of Damocles hanging over its head,” said Jay Modrall, a lawyer for Norton Rose Fulbright in Brussels. That’s because it’s no longer Google’s choice on how it makes changes to allay EU concerns. Instead, it’s “under a legal requirement to do so and under notice that if its commitments are not sufficient, it’ll be fined even more.”

Google is even more of a monopoly in Europe than it is in the United States, with an estimated 95% market share. Given that it is a near monopoly, it deserves to be stringently regulated. Kudos to the European authorities for holding the Monster of Mountain View accountable for its search-skewing.