Alphabet’s Google was charged a record shattering $2.7 billion in fines after the European Commission found that the tech giant was violating EU’s stringent antitrust laws. The litigation, which had been ongoing for seven years, alleges that Google has been leveraging its dominance as a top search engine to favor the rest of their products, which include their shopping service and AdSense.
Margrethe Vestager, the European Commission’s Antitrust Chief, explains that this adversely affects consumer choice and product innovation in the market, “The incentive for the dominant company to innovate when you can place yourself on top is minimized. If the rival company knows that the probability of them being found is small, it minimizes their incentive as well.”
To make matters worse for Google, the regulators have given them 90 days to change their business practices or face hefty $25 million in fines every day. Google plans on appealing against the decision.