Share

Google faces record EU anti-trust fine

Brussels - The EU's powerful anti-trust regulator will decide a historic case against Google in the coming weeks that could see the Internet giant hit with a record fine, according to sources.

"We are heading towards a decision this summer," one source close to the matter told AFP on condition of anonymity.

Led by hard-charging European Commission competition chief Margrethe Vestager, Google faces a massive penalty that could reach as much $9bn, or 10% of Google's total revenue last year.

Brussels accuses Google of giving its own online shopping services top priority in search results to the detriment of other price comparison services.

The case is one of three against Google and of several against blockbuster US companies including Starbucks, Apple, Amazon and McDonalds.

The previous record for illegal monopoly practices is held by US firm Intel, which was fined €1.06bn in 2009, about 3% of the company's turnover.

"The commission's radio silence in the past months means that it is approaching the decision," another source close to the matter told AFP, who expected a hefty fine.

In August, Vestager shocked the world with a demand that Apple repay Ireland €13bn in back taxes.

In the other cases, the EU is examining Google's AdSense advertising service and its Android mobile phone software.

The potentially painful verdict against Google came after a long period in which the two sides tried unsuccessfully to settle the case amicably.

Instead, the cases have raised tensions between Brussels and Washington, which has accused the EU of unfairly targeting US giants.

The European Commission, which polices EU competition policy, launched an initial investigation into Google in 2010 following complaints from rivals such as Microsoft and Trip Advisor that it favoured its own shopping services when customers ran searches.

Claims that practices by Google Shopping harm competition "are wrong as a matter of fact, law, and economics," Google's general counsel Kent Walker wrote in his response to the EU last year.

Vestager's predecessor, Joaquin Almunia, made three attempts to resolve the dispute but in each case intense pressure by national governments, rivals and privacy advocates scuppered the effort.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.2%
Rand - Pound
23.83
+0.3%
Rand - Euro
20.36
+0.3%
Rand - Aus dollar
12.31
+0.3%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders