Home Internet EUROPEAN COMMISSION Slash Google with a €1.49bn (£1.28bn) mega-fine

EUROPEAN COMMISSION Slash Google with a €1.49bn (£1.28bn) mega-fine

- Advertisement -

EUROPEAN COMMISSION (EC) has slapped Google with a €1.49bn (£1.28bn) mega-fine over its “anticompetitive” AdSense service.

The EC started probing AdSense back in 2016, and it on Tuesday concluded that Google has abused its market dominance by preventing rivals from competing in the online search advertising intermediation market.

- Advertisement -

“The Commission found that Google’s conduct harmed competition and consumers, and stifled innovation,” the EC said in its decision. “Google‘s rivals were unable to grow and offer alternative online search advertising intermediation services to those of Google.

“As a result, owners of websites had limited options for monetizing space on these websites and were forced to rely almost solely on Google.”

The Commission found three types of anti-competitive behaviour in Google‘s ad brokering contracts:

  • Google included exclusivity clauses in its contracts that meant that publishers were prohibited from placing any search adverts from competitors on their search results pages.
  • Google began replacing the exclusivity clauses with so-called ‘Premium Placement’ clauses that required publishers to reserve the most profitable space on their search results pages for Google’s adverts.
  • Google included clauses requiring publishers to seek written approval from Google before making changes to the way in which any rival adverts were displayed.

Commissioner Margrethe Vestager, in charge of competition policy, said: “Today the Commission has fined Google €1.49bn for illegal misuse of its dominant position in the market for the brokering of online search adverts.

“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. This is illegal under EU antitrust rules.

“The misconduct lasted over 10 years and denied other companies the possibility to compete on the merits and to innovate – and consumers the benefits of competition.”

Google has yet to comment, but we’ll update this article as we hear more.

This is the third fine the EU has levied at Google in two years; in 2017 the search giant was hit with a €2.42bn over its anticompetitive Shopping service, and last year it was whacked with a record-breaking €4.3bn fine for Android dominance abuse

Click Here To Visit The leading Education Platform Click Here To Read Latest News in Nigeria
Technology has brought joy to the world and make work simple and easier... We are tech lovers........... A PUBLISHER @ ALL TECH NEWS....................


Please enter your comment!
Please enter your name here

Must Read

5G adoption will enhance digital economy in Nigeria

An IT expert, Mr Jide Awe, on Saturday said that adopting the 5G network would enhance digital economy in Nigeria. Awe made the assertion in...

The end of the MIUI Global Beta program for all devices – Mi Community

Current trend as MIUI is Xiaomi’s heavily customized Android skin for its smartphones and ever since it first started MIUI back in 2010, it...

ICT essential to improve education –

The Proprietor of Legacy Nursery and Primary School, Ilorin, Mr David Olusegun has suggested Information Communication Technology (ICT) as important tools to improve teaching...

Huawei delays its first 5G phone Mate X

Huawei’s first 5G phone, the $2,600 foldable tablet-phone hybrid Mate X, will miss its originally expected June release date in favor of a revised...

Motorola One Action leaked

A render of the One Action has surfaced, showing us what it looks like. The Motorola One Action looks similar to the One Vision announced last month. It...