European Union Leaves Google With Expensive Shopping Bill

EU lashes out at Google for allegedly manipulating search results to favour its own services.

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GOOGLE HAS BEEN hit with a fine of more than $2 billion over allegations that it manipulated search results to favour its own services over other sites.

The fine, which was announced just as this magazine went to print, was much larger than expected and comfortably exceeds the €1 billion meted out to Intel eight years ago for skewing the processor market at the expense of rivals.

Google contested the EU’s ruling. “We respectfully disagree with the conclusions announced today,” the company said in a 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.”

While the fine will hurt, the key impact of the EU’s final ruling could be major changes to Google’s business model that have a far greater impact on the firm’s profits. “Although the anticipated fine is likely to dominate the headlines, the prohibition of Google’s illegal search manipulation practices will be far more important,” said Shivaun Raff, CEO of Foundem, which along with Microsoft and other companies brought the initial complaint to the EU.