EU antitrust regulators hit Alphabet unit Google with a record 2.42-billion-euro ($2.7 billion) fine on Tuesday, taking a tough line in the first of three investigations into the company's dominance in searches and smartphones.
It is the biggest fine the EU has ever imposed on a single company in an antitrust case, exceeding a 1.06-billion-euro sanction handed down to U.S. chipmaker Intel in 2009.
The European Commission said the world's most popular internet search engine has 90 days to stop favouring its own shopping service or face a further penalty per day of up to 5 percent of Alphabet's average daily global turnover.
The fine, equivalent to 3 percent of Alphabet's turnover, is the biggest regulatory setback for Google, which settled with U.S. enforcers in 2013 without a penalty after agreeing to change some of its search practices.
The EU competition enforcer has also charged Google with using its Android mobile operating system to crush rivals, a case that could potentially be the most damaging for the company, with the system used in most smartphones.
The company has also been accused of blocking rivals in online search advertising.
The Commission found that Google, with a market share in searches of over 90 percent in most European countries, had systematically given prominent placement in searches to its own comparison shopping service and demoted those of rivals in search results.
"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," European Competition Commissioner Margrethe Vestager said in a statement.
Google said its data showed people preferred links taking them directly to products they want and not to websites where they have to repeat their search.
"We respectfully disagree with the conclusions announced today. We will review the Commission's decision in detail as we consider an appeal, and we look forward to continuing to make our case," Kent Walker, Google's general counsel, said in a statement.
The action follows a seven-year investigation prompted by scores of complaints from rivals such as U.S. consumer review website Yelp, TripAdvisor, UK price comparison site Foundem, News Corp and lobbying group FairSearch.
The penalty payment for failure to comply would amount to around $12 million a day based on Alphabet's 2016 turnover of $90.3 billion. The Commission did not specify what changes Google had to make.
"This decision is a game-changer. The Commission confirmed that consumers do not see what is most relevant for them on the world’s most used search engine but rather what is best for Google," said Monique Goyens, director general of EU consumer group BEUC.
Thomas Vinje, legal counsel to FairSearch, welcomed the Commission's findings and urged it to act on Google's Android mobile operating system following its 2013 complaint that Google restricted competition in software running on mobile devices.
Reuters
Tue Jun 27 2017
A Google logo is seen in a store in Los Angeles, California, U.S., March 24, 2017. - REUTERS/Lucy Nicholson
Suggesting MCA's removal from BN is 'daydreaming' - Ahmad Zahid
Barisan Nasional chairman Datuk Seri Dr Ahmad Zahid Hamidi emphasised that the coalition has never discussed removing MCA.
Five people shot in attack at Swedish school, police say
The shooting took place in a campus area where several schools are located.
50 per cent toll discount to be implemented during all festive seasons this year - Nanta
Datuk Seri Alexander Nanta Linggi says this measure would reduce the costs borne by the government in compensating highway concessionaires.
China launches antitrust probe into Google
China's State Administration for Market Regulation launches an antitrust investigation against Google over suspected violations.
Arab nations oppose removing Palestinians from Gaza in letter to US
Reconstruction in Gaza should be through direct engagement with and participation of the people of Gaza, the letter said.
Trump orders creation of US sovereign wealth fund, says it could buy TikTok
If created, the sovereign wealth fund could place the US alongside numerous other countries, particularly in the Middle East and Asia.
Hundreds flee Santorini as quakes disrupt life
Hundreds of quakes registered every few minutes between the volcanic islands of Santorini and Amorgos in the Aegean Sea.
Investigators probe Washington plane crash wreckage and flight logs
The salvage team recovers part of the fuselage and right engine and the Black Hawk will be retrieved after the plane is fully recovered.
Malaysia eyes leadership in Southeast Asia’s e-commerce boom
E-commerce in Southeast Asia is undergoing rapid transformation, and Malaysia finds itself at a pivotal moment in this digital revolution.
Free KTM Komuter rides on Feb 10, 11 for Thaipusam
Anthony Loke says free rides would be available from midnight to 11.59 pm, using check-out scanning mechanism at automatic control gates.
Counter staff rotation starts today to enhance service efficiency - PSD
The initiative enhances officers' skills, diversifies roles, and improves the customer experience at service counters.
El Salvador offers to house criminals deported from the US in its jails
The Trump administration removes protection against deportation from hundreds of thousands of Venezuelans in the US.
Electricity tariff hike will not affect 85 per cent of the population - PM
Datuk Seri Anwar Ibrahim says this is because the tariff hike would only apply to the industries and the super-rich group.
Malaysia's global ties to boost investments, exports - PM
Datuk Seri Anwar Ibrahim says Malaysia's trade relations with the United States will continue as usual.
Muhyiddin maintains not guilty plea over alleged seditious remarks
Tan Sri Muhyiddin Yassin's lawyer says he plans to challenge the validity of certain Sedition Act provisions in the Federal Court.
With the Gaza ceasefire in the balance, all eyes are on Benjamin Netanyahu’s trip to Washington
The Trump-Netanyahu bond is so strong that it could even enable the Israeli leader to declare sovereignty over the West Bank.
Sarawak floods: Number of evacuees dips to slightly above 9,000
Continuous heavy rain at the severe level is also expected to occur in several areas in Sabah and Sarawak until tomorrow.
China hits back with tariffs on US goods after Trump imposes new levies
China's Finance Ministry said it would impose levies of 15% for U.S. coal and LNG and 10% for crude oil, farm equipment and some autos.
Trump says there is 'great interest' in TikTok
Trump says there is a lot of interest in TikTok, as his administration seeks to broker a sale of the popular app.
Indonesia police arrest 56 men at Jakarta "gay sex party"
The men were arrested at a South Jakarta hotel after a "same-sex sex party".