Global tech giant, Google, has been fined £1.28 billion (€1.49 billion) for breaching competition laws.
This is the third time Google have been penalised for breaching competition law in as many years, with the latest fine taking the total amount over £7 billion following previous fines in relation to its online shopping service and Android operating system.
Google was found to have restricted rivals from appearing in online search advertisements by rigging its AdSense advertising program to prevent rival companies’ adverts from appearing in those advertising spaces
According to the competition investigation, Google had been including “exclusivity clauses” in its contracts with publishers since 2006.
These were then replaced in 2009 with a different form of restriction known as a ‘premium placement’ clause which prevented rivals’ ads from being placed in the best advertising spots.
The EU Competition Commissioner, Margrethe Vestager, found that Google had abused its market dominance in the world of online search advertising intermediation by preventing rivals from being able to compete equally in the market.
The fine works out to be equal to 1.29 per cent of Google’s turnover in 2018 (the maximum fine possible under EU law is 10%), but the Commissioner stated that Google is also liable to be sued in civil cases by rivals who were harmed by its illegal practices.
When announcing the fine, the Commissioner said that “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. ”
She added: “They shouldn’t do that – it denied consumers choice, innovative products and fair prices.”
A Google spokesperson responded and said the company had made a “wide range of changes” to address the commission’s concerns, although it is possible that Google will appeal the decision.
Justin Ellis, a Director at iLaw, said: “The latest fine issued against Google is amongst the most significant yet.
“In this case, Google is accused of using its commercial dominance to stop fair competition; in effect creating an unlevel playing field.
“Despite the fact that many have questioned whether regulators have sufficient bite or are willing to use penalties of this size against the big tech firms, this is a clear indication that they will indeed take action where there is evidence that a business isn’t abiding by the rules.
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