September 29, 2017
Alphabet is forming a separate shopping service in Europe that will require it to bid against competitors for ads that top Google’s search results.
The comparison shopping service will still be part of Google, but it will operate as a separate entity, using its own revenues to bid for ads, sources told Bloomberg.
The move was made to pacify the European Union, which has accused the search engine firm’s comparison shopping service of violating anti-trust laws.
The European Commission, the executive arm of the European Union, slapped Google back in June with a record-breaking fine of $2.7 billion, saying the company must change its ways within the next 90 days or fork over the money.
The Commission, in a statement at the time, said Google had abused its market dominance as a search engine by illegally suppressing competition, giving its own products and services prominence over that of its competitors in its comparison shopping service.
Google filed an appeal earlier this month with the EU’s General Court, which is based in Luxembourg, in the hopes it will disagree with the European Commission’s assessment of Google’s comparison shopping service.
Regardless of the outcome of the appeal, Google’s changes to its shopping service enable the company to focus its efforts on another huge anti-trust fight.
The Commission is also investigating Google’s conduct with mobile operating systems, apps and services. The Commission’s investigation into Google’s Android OS rules will be to determine if the firm is hindering the development and market access of rival mobile operating systems, applications and services, disadvantaging consumers and developers.
If the Commission finds Google guilty, the company will be hit with another massive fine.
Jennifer Cowan is the Managing Editor for SiteProNews.