This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.nytimes.com/2017/06/27/technology/eu-google-fine.html

The article has changed 6 times. There is an RSS feed of changes available.

Version 0 Version 1
Google Fined $2.7 Billion in European Antitrust Ruling Google Fined $2.7 Billion in E.U. Antitrust Ruling
(35 minutes later)
Google suffered a major regulatory blow on Tuesday after European antitrust officials fined the search giant 2.4 billion euros, or $2.7 billion, for unfairly favoring some of its own search services over those of rivals.Google suffered a major regulatory blow on Tuesday after European antitrust officials fined the search giant 2.4 billion euros, or $2.7 billion, for unfairly favoring some of its own search services over those of rivals.
The hefty fine marks the latest chapter in a lengthy standoff between Europe and Google, which also faces two separate charges under the region’s competition rules related to Android, its popular mobile software, and to some of its advertising products. Google denies the accusations.The hefty fine marks the latest chapter in a lengthy standoff between Europe and Google, which also faces two separate charges under the region’s competition rules related to Android, its popular mobile software, and to some of its advertising products. Google denies the accusations.
By levying the fine — the biggest ever in this type of antitrust case — Margrethe Vestager, Europe’s antitrust chief, has laid down a marker as arguably the Western world’s most aggressive regulator of digital services from the likes of Google and Facebook.By levying the fine — the biggest ever in this type of antitrust case — Margrethe Vestager, Europe’s antitrust chief, has laid down a marker as arguably the Western world’s most aggressive regulator of digital services from the likes of Google and Facebook.
Ms. Vestager has already demanded that Apple repay $14.5 billion in back taxes in Ireland, opened an ongoing investigation into Amazon’s tax practices in Europe and raised concerns about Facebook’s alleged dominance over people’s digital data. The companies deny any wrongdoing. Ms. Vestager has already demanded that Apple repay $14.5 billion in back taxes in Ireland, opened an ongoing investigation into Amazon’s tax practices in Europe and raised concerns about Facebook’s alleged dominance over users’ digital data. The companies deny any wrongdoing.
Such focus on Silicon Valley firms has prompted accusations from some in the United States that Europe is unfairly targeting American companies. The region’s officials vigorously deny these claims.Such focus on Silicon Valley firms has prompted accusations from some in the United States that Europe is unfairly targeting American companies. The region’s officials vigorously deny these claims.
But with the record antitrust fine against Google — larger than the previous high of €1.06 billion against Intel in 2009 — European officials have gone significantly further than their American counterparts in determining what is, and is not, allowed to take place on the web. But with the record antitrust fine against Google — the previous high, against Intel in 2009, was €1.06 billion — officials from the European Commission, the executive arm of the European Union, have gone significantly further than their American counterparts in determining what is, and is not, allowed to take place on the web.
“What Google has done is illegal under E.U. antitrust rules,” said Ms. Vestager in a statement on Tuesday. “It denied other companies the chance to compete on the merits and to innovate. And most importantly, it denied European consumers a genuine choice of services and the full benefits of innovation.” “What Google has done is illegal under E.U. antitrust rules,” Ms. Vestager said in a statement on Tuesday. “It denied other companies the chance to compete on the merits and to innovate. And most importantly, it denied European consumers a genuine choice of services and the full benefits of innovation.”
Google has repeatedly denied that it has breached Europe’s tough competition rules, saying that its digital services have helped the region’s digital economy to grow and are used by hundreds of millions of Europeans each day. It also adds that there remains significant online competition in Europe, including from the likes of Amazon and eBay. Google has repeatedly denied that it has breached Europe’s tough competition rules, saying that its digital services have helped the region’s digital economy to grow and are used by hundreds of millions of Europeans each day. It has also said that significant online competition remains in Europe, including from the likes of Amazon and eBay.
Google is likely to consider an appeal. “We respectfully disagree with the conclusions announced today,” Kent Walker, the company’s general counsel, said in statement. “We will review the commission’s decision in detail as we consider an appeal, and we look forward to continuing to make our case.”
The antitrust ruling on Tuesday related to Google’s online shopping service, which the European Commission, the executive arm of the European Union, said received preferential treatment compared to those of rivals in specialized search results. The antitrust ruling on Tuesday related to Google’s online shopping service, which the European Commission said had received preferential treatment compared to those of rivals in specialized search results.
Analysts say these so-called vertical search products — that also include those for restaurant and business reviews — represent a fast-growing percentage of Google’s annual revenues. Analysts say these so-called vertical search products — also including those for restaurant and business reviews — represent a fast-growing percentage of Google’s annual revenue.
While the fine is likely to garner much of the attention, focus will quickly shift to the changes that Google will now be forced to make to comply with Europe’s antitrust decision. While the fine is likely to garner much of the attention, focus will quickly shift to the changes that Google will now be forced to make to comply with the antitrust decision.
Under European rules, the search giant — and not the regulator — must come up with proposals to guarantee that it treats competitors fairly when people make online search queries. The authorities can demand that Google make further changes if they are not satisfied with the initial proposals. Under European rules, the company — and not the regulator — must come up with proposals to guarantee that it treats competitors fairly when people make online search queries. The authorities can demand that Google make further changes if they are not satisfied with the initial proposals.
Analysts and many of Google’s competitors have called for an independent monitor to oversee the company’s digital services in Europe, which may potentially extend to tough oversight of its search algorithms, some of Google’s most important intellectual property. The search giant is likely to fiercely oppose such a remedy. Google now has 90 days to respond to the European Commission’s demands, or face penalty payments of up to 5 percent of the average daily global revenue of Alphabet, its parent company. European officials said on Tuesday that they would continue to monitor the company’s activities linked to the fine to ensure that it complied with the ruling.
Analysts and many of Google’s competitors have called for an independent monitor to oversee the company’s digital services in Europe, which may potentially extend to tough oversight of its search algorithms, some of Google’s most important intellectual property. The company is likely to fiercely oppose such a remedy.
Google has other options, including the removal of some of its specialized search services from Europe, as well as returning them to how they operated before Europe’s investigation began almost a decade ago.Google has other options, including the removal of some of its specialized search services from Europe, as well as returning them to how they operated before Europe’s investigation began almost a decade ago.
Whatever the outcome, analysts expect a protracted legal battle that will continue for several years as both Google and its rivals fight to define how the search giant can offer its services to Europeans and those farther afield. Whatever the outcome, analysts expect a protracted legal battle that will continue for several years as both Google and its rivals fight to define how search services to Europeans and those farther afield.
“The changes could have ramifications beyond Google Shopping, and might even impact Google’s operations in the U.S.,” a number of American companies that have filed antitrust complaints against Google said in a public letter ahead of the ruling on Tuesday. The signatories included Oracle, News Corporation and Yelp. “The changes could have ramifications beyond Google Shopping, and might even impact Google’s operations in the U.S.,” a number of American companies that have filed antitrust complaints against Google said in a public letter before the ruling was released. The signatories included Oracle, News Corporation and Yelp.