Tech News: Regulators from EU requires Google with $1.7B for barring ad competitors
March 20, 2019 | Wednesday
On Wednesday, the European Union fines Google to pay about 1.49 billion euro ($1.69 billion) after suppressing competition within the online advertising sector.
According to the European Commission, Google places a thorough contract for website owners. That is to prevent them from joining the search result from Google's competitors. Furthermore, the clauses changed in 2009 by the premium payments for the same year. Permission for rival ads to display is somehow an inquiry of Google.
According to Margrethe Vestager, European Union Commissioner, Google restricted its rivals to "compete and innovative fairly" within the online advertising market.
While in Brussels, Vestager said, “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."
“We’ve always agreed that healthy, thriving markets are in everyone’s interest. We’ve already made a wide range of changes to our products to address the Commission’s concerns. Over the next few months, we’ll be making further updates to give more visibility to rivals in Europe.” said Kent Walker, Google's senior vice president of global affairs, as a response on the issue.
Google against EU
Previously, the Alphabet firm defends the usage of its ad technology. That is to say, it claims it is in place since the year 2006, and now outmoded becoming a minor product.
In 2018, during the fourth quarter, the firm's advertising sector seen a profit increase at about 20 percent compared to the preceding quarter with $32.6 billion. That the same rate of development in the last quarter.
Moreover, the European Commission points out that within 2006 towards 2016, the firm has been the strongest when it comes to search engine advertising sector in the European Economic Area. That is to say, Google holds about seventy percent of the overall share market.
During the month of July last year, Brussels regulators attack Alphabet requiring a $5 billion charge for abusing its dominance within the Android mobile operating system.
To clarify the issue, According to Brussel regulators, Google let phone producers use a free open-source Android software. However, the EU alleged the company as it benefits on its own services. That includes forcing phone producers to include Google products such as Search, Chrome, and Maps with its App Store.