Google Facing Possible $6bn Fine by the EU

/ 2 years ago


$6 billion isn’t exactly pocket change, even for a company that apparently owns 25% of all internet traffic. Google’s recent fight with the European Union may end up costing them quite a large amount of coin, in total equal to 10% of their global revenue. Microsoft had a run in recently, but got off rather lightly in comparison with a $731 million debt owed.

The Guardian reported the ultimatum given to google on Tuesday:

“In a dramatic change of position, Joaquín Almunia, the EC’s competition commissioner, told the European parliament that unless Google altered its offer to settle complaints, it could face a “statement of objections”, the formal path towards a fine that could equate to 10% of the company’s global revenue, or about $6bn (£3.7bn).”

Almunia also stated:

“Microsoft was investigated [by the EC] for 16 years, which is four times as much as the Google investigation has taken, and there are more problems with Google than there were with Microsoft”

Controlling over 90% of search traffic that travels through Europe, it’s obvious that Google is a rather big deal globally. Alongside the fact that Google have been fighting this case since its opening in November 2010, the statements above by Almunia are vastly different to the position he took before summer. Originally Almunia was set to take Google’s third set of proposals and settle the case – however its been said that thanks to the recent change of light, companies who are part of the complaint are pleased with this progress.

Almunia informed MEP’s that this change in position is due to “new factual evidence” about the impact on rivals of the proposals. In response Google stated “we continue to work with the European commission to resolve their concerns”.

For any updates on progress or settlement of this case, keep checking eTeknix.

Image courtesy of The Telegraph

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  • NotTheOtherPony

    And what exactly are the EU going to do if Google tells them to get stuffed?

    • EzDzR

      Cry, then not have access to Google.

      • hiredranger2014

        Google wont want that. Google provide nothing which isn’t provided by many others. If people were to be forced to use their brain they would and it would be barely a breath of difference to anyone. In fact, the world would be better off in the event that the replacements were not in one of the creepy internet manipulating jurisdictions such as the US or UK.

        • EzDzR

          Yeah, go use Bing and tell me how it won’t work out for Google. All praise Google.

          • hiredranger2014

            Most people I know are using duckduckgo and other similar services which are more respectful of privacy anyway now. I was even told by a client (off the record) that we would fail their security audit if we continued using Google hosting or gmail so we spent the last 6 just hs mitigating our reliance on them and similarly dropbox. Despite my initial concern, it has actually started paying dividends, both in terms of bringing back control of our own data and when used competitivey. Many international clients, particularly in Europe have responded very positively to our commitment to their privacy. It has been a bit like the decision to quit Facebook in a way. After a week I just couldn’t work out why I started using it to start with. Neither of these companies are essential by any means.

          • EzDzR

            I don’t care.

  • Alistair Hardy

    They’re being unfair on google.
    I’m no fan of how they data mine their users but Google offer a good service.
    And saying they can’t advertise their own systems is rediculous.