Google up to $9.4 billion in total fines to EU, with latest $1.7 billion AdSense penalty
The European Commission has fined Google $1.7 billion for illegally favoring its own AdSense in search advertising, bringing the company's total fines for anticompetitive behavior so far in the region to $9.42 billion.
"Google is fined 1.49bn for illegal practices in search advertising brokering to cement its dominant market position," announced Margrethe Vestager, the European Commissioner for Competition, on Twitter. "They shouldn't do that -- it denied consumers choice, innovative products and fair prices."
"Google has cemented its dominance in online search adverts and shielded itself from competitive pressure by imposing anti-competitive contractual restrictions on third-party websites," she said. "This is illegal under EU antitrust rules."
Speaking in Brussells, Vestager further added that Google prevented its rivals from being able to compete fairly.
"The misconduct lasted over 10 years and denied other companies the possibility to compete on the merits," she continued, "and consumers the benefits of competition."
While not responding specifically about the decision, Google's Kent Walker, senior vice president of Global Affairs, issued a press release about the company's relationship with the Commission. "For nearly a decade, we've been in discussions with the European Commission about the way some of our products work," he said. "Throughout this process, we've always agreed on one thing -- that healthy, thriving markets are in everyone's interest."
Walker says that Google has been listening carefully to the rulings and feedback over time. Google is promising "further updates" to products in Europe to comply with the rulings.
Extract from Google's latest blog about working with the European Commission
"We changed the licensing model for the Google apps we build for use on Android phones," Walker wrote. "In doing so, we maintained the freedom for phone makers to install any alternative app alongside a Google app. Now we'll also do more to ensure that Android phone owners know about the wide choice of browsers and search engines available to download to their phones."
As well as the fines for restrictions on Android phone makers and this most recent ruling about search advertising, the European Commission also fined Google $2.7 billion in 2017. The $2.7 billion fine was for a case where the European Commission concluded that the company's comparison shopping service was unfairly weighted toward Google.
"Google's strategy for its comparison shopping service wasn't just about attracting customers by making its product better than those of its rivals," Vestager said at the time. "Instead, Google abused its market dominance as a search engine by promoting its own comparison shopping service in its search results, and demoting those of competitors."
The European Commission is currently now investigating Apple following an official complaint from Spotify over alleged anti-competitive practices to do with the App Store and Apple Music. Apple refutes the accusation and the case is continuing.
"Google is fined 1.49bn for illegal practices in search advertising brokering to cement its dominant market position," announced Margrethe Vestager, the European Commissioner for Competition, on Twitter. "They shouldn't do that -- it denied consumers choice, innovative products and fair prices."
"Google has cemented its dominance in online search adverts and shielded itself from competitive pressure by imposing anti-competitive contractual restrictions on third-party websites," she said. "This is illegal under EU antitrust rules."
Speaking in Brussells, Vestager further added that Google prevented its rivals from being able to compete fairly.
"The misconduct lasted over 10 years and denied other companies the possibility to compete on the merits," she continued, "and consumers the benefits of competition."
Google has not as of yet provided any direct comment about the AdSense case, but instead addresses concerns from previous European Commission rulings. Specifically, he responds to the July 2018 decision of the Commission to fine Google $5 billion for how it required Android smartphone producers to install Google apps.The third @Google case: @Google is fined 1,49bn for illegal practices in search advertising brokering to cement its dominant market position. They shouldn't do that - it denied consumers choice, innovative products and fair prices.
-- Margrethe Vestager (@vestager)
While not responding specifically about the decision, Google's Kent Walker, senior vice president of Global Affairs, issued a press release about the company's relationship with the Commission. "For nearly a decade, we've been in discussions with the European Commission about the way some of our products work," he said. "Throughout this process, we've always agreed on one thing -- that healthy, thriving markets are in everyone's interest."
Walker says that Google has been listening carefully to the rulings and feedback over time. Google is promising "further updates" to products in Europe to comply with the rulings.
Extract from Google's latest blog about working with the European Commission
"We changed the licensing model for the Google apps we build for use on Android phones," Walker wrote. "In doing so, we maintained the freedom for phone makers to install any alternative app alongside a Google app. Now we'll also do more to ensure that Android phone owners know about the wide choice of browsers and search engines available to download to their phones."
As well as the fines for restrictions on Android phone makers and this most recent ruling about search advertising, the European Commission also fined Google $2.7 billion in 2017. The $2.7 billion fine was for a case where the European Commission concluded that the company's comparison shopping service was unfairly weighted toward Google.
"Google's strategy for its comparison shopping service wasn't just about attracting customers by making its product better than those of its rivals," Vestager said at the time. "Instead, Google abused its market dominance as a search engine by promoting its own comparison shopping service in its search results, and demoting those of competitors."
The European Commission is currently now investigating Apple following an official complaint from Spotify over alleged anti-competitive practices to do with the App Store and Apple Music. Apple refutes the accusation and the case is continuing.
Comments
You could take that 3rd paragraph, substitute a different name, and perhaps end up with the same result IMHO.
"(Blank) has cemented its dominance in (blank) and shielded itself from competitive pressure by imposing anti-competitive contractual restrictions on third-party (blank)," she said. "This is illegal under EU antitrust rules."
Note that the EU says "market dominance is not illegal under EU antitrust rules. However they have a “special responsibility” not to abuse their powerful market position by restricting direct competition."
Maybe if you hope & pray enough it will happen. But I wouldn’t hold my breath.
Three words. “Dominant Market Position”
Used in all the various EU cases against Microsoft and Google. Apple doesn’t have this, especially in Europe where Android is dominant.
How can the UE ever fine Apple for being the “dominant market leader” when they just fined Android (Google) for the same thing? How can two competing companies BOTH be declared “dominant”?
Operating System Market Share Europe
FWIW over 20% of the "Android" marketshare is NOT Google Android and therefore not under their control. Huawei and Xiaomi both run forked versions for their operating systems.
That would include Chinese companies but there aren't as many big Chinese breaking the rules in the EU as there are US companies (Microsoft and Google being repeat offenders).
EU tech companies have never been as competitive nor invested so much in tech as now.
https://www.weforum.org/agenda/2017/04/step-aside-silicon-valley-there-is-a-new-tech-hub-in-town
Not bad by patent registrations either:
https://www.iol.co.za/business-report/international/huawei-tops-corporate-patent-applications-in-2018-wipo-19990698
That, on top of high level EU plans to develop its own chipsets at all levels of computing (starting with HPC) and as a result to reduce mission critical technology purchases from the USA.
FFS, you can’t be that stupid.
The only market share that matters is iOS vs Android as they are both mobile. The EU clearly stated in their antitrust case against Android (Google) that they had abused their market position in mobile, not overall OS share.
Seriously, why do you insist on intentionally lying all the time? You’re truly a worthless fucking troll.
"FWIW over 20% of the "Android" marketshare (in Europe) is NOT Google Android and therefore not under their control. Huawei and Xiaomi both run forked versions for their operating systems"
I think that puts the Google-controlled Android OS at 50% or less of even European mobile OS market-share. Do you consider that "dominant"? Fair enough if you do, good enough for the EU.
And gosh all said without personally attacking you as a bad person or calling you silly names.
Anyway here's what the EU claimed about Google Play:
"The Commission determined that starting in 2011 Google became dominant in the market for app stores for Android, and thus its practice of forcing manufacturers to preinstall the Google Search app was found to be illegal.
The commission argues that pre-installation (ie Chrome browser) creates a status quo bias for users, as whatever default applications are included with a device are the predominantly retained ones by users, creating a significant barrier to entry for competing alternatives."
The EU Commission may look at potential abuses by Apple being "dominant in the market for app stores for iOS" quite differently. None of us know, least of all you or me as neither of us are well-schooled in the machinations of European competition law AFAIK.
That accounts for my use of the word "perhaps" in the post you took such issue with. Not entirely sure what accounts for your angry ad-hom laden and profane post in return.
That said, the EU should have been imposing fines of about 10x the amount they have done both in previous and current Google prosecutions. Google is aware of the law, but chooses to break it because they earn hundreds of times more money than they might possibly face in fines.
If the EU or other regulatory bodies actually want this behaviour to be changed, make the fines for clear violations devastating and ongoing until the behaviour is corrected.
I'm not convinced that the EU is all that interested in consumers, given the interests they have shown in equalizing competition.
First, do no harm. Don't mess with Apple's consumer privacy and security features. Don't mess with the walled garden.