UPDATED 23:34 EST / JUNE 26 2017

APPS

Google expected to be hit with record antitrust fine  

Google Inc.’s parent company Alphabet Inc. could be looking at a record fine from the European Union following a probe into the company allegedly promoting its shopping services above smaller competitors, according to a report published by Bloomberg.

The fine is set to be bigger than the $1.2 billion that Intel Corp. was hit with seven years ago, after it was accused of stifling competition from other chip makers by giving personal computer manufacturers rebates for buying its own chips. Intel fought the decision, and a judgment on its appeal at the Court of Justice of the European Union is expected in 2018.

It’s reported that the EU has moved the Google ruling forward, which has already been informally passed by EU Competition Commissioner Margrethe Vestager. The seven-year probe is a result of companies complaining that Google has been abusing its power regarding the advertising of its own products.

On top of the record-breaking fine, Google also may be forced by the EU to change how competing products of all types are displayed in search results. Google has denied any wrongdoing, stating in a blog post, “We believe these claims are wrong as a matter of fact, law and economics.”

Google is currently fighting two other cases in which EU regulators have said it’s abusing its powers, while critics of the EU have said U.S. tech giants are being unfairly targeted. Companies based in the U.S. have also said American regulators don’t do enough to stop tech titans from abusing their position.

The commission can fine Google as much as 10 percent of its annual revenue, which would be something in the region of $9 billion. It’s expected Google will know the extent of the damage sometime this week, although the EU so far has not made an official comment.

Google has said it is continuing “to engage constructively with the European Commission and we believe strongly that our innovations in online shopping have been good for shoppers, retailers and competition.”

Image: GuillermoJM via Flickr

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