Google Facing Possible $6bn Fine by the EU
Chris Smith / 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