Google may soon have to pay out big fines levied by the European Union (EU). The grounds for the fines, as per the EU, are to deter Google from blocking competitors in the comparison-shopping marketplace. Specifically, the fines would be for Google’s AdWords revenue that comes from European users.
The European Union’s competition watchdog told Google it could expect fines for its AdWords-related activities. The EU released a statement of objections to back up its case. As well, the EU may enforce changes for Google to implement on how it displays its shopping services.
As for the amount of the fine to impose on Google, the EU intends for it to be significant enough to deter the search engine giant, as per the document seen by Bloomberg. As well, the document says that Google either carried out the infringement deliberately or at least with negligence.
As per critics, the world’s biggest search engine has been using its influence to put unfairly its own services and paid ads at the forefront of search results. The EU, who was once patient with Google, is now less so after three settlement bids did not leave critics happy.
European Union investigations have been happening since 2010. Complaints that have led to the EU probe have come from publishers such as Expedia Inc. and Microsoft Corp.
The full version of the document was sent to Google in April that said the huge company was wielding its influence over the search-engine market. As the EU accuses the California-based business of breaking the law, with antitrust arguments, it’s clear this investigation is now in new territory.
Factors to consider, to determine the fines that Google may have to pay, include the revenue from AdWords as they relate to European users’ clicks and revenue from product searches on its search engine. Revenue from its price-comparison platform is another factor.