28 Jun 2017

Google fined $3.7 billion for antitrust rules

From Morning Report, 7:17 am on 28 June 2017

EU antitrust regulators have hit Alphabet unit Google with a record €2.42 billion fine, taking a tough line in the first of three investigations into the company's dominance in searches and smartphones.

 The logo for US technology company and search engine Google is displayed on screens in London on February 11, 2016.

The logo for US technology company and search engine Google is displayed on screens in London on February 11, 2016. Photo: LEON NEAL AFP

It is the biggest fine the EU has ever imposed on a single company in an antitrust case, exceeding a €1.06bn sanction handed down to US 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.

Our correspondent in Brussels, Jack Parrock, told Morning Report the fine shows that European Competition Commissioner Margrethe Vestager is prepared to take on large American companies.

"She says it's not only American companies and she'll take everyone on, but some in the US are saying potentially she's trying to victimise American firms," he said.

Mr Parrock said it was likely Google would try to appeal the ruling.