• 3 hours Retail Sales Rebound, But Is It Enough To Post Positive Earnings?
  • 6 hours Stocks Continue To Slide As Economic Fears Fester
  • 9 hours Where Does The True Value Of Gold Lie?
  • 11 hours Bitcoin Soars Amid Tether Drama
  • 1 day Fake Cheese, Hooters, And Big Banks: The Millennial Market Hitlist
  • 2 days “Enormous Piles Of Cash” Are About To Return To The Market
  • 3 days UAE Approves ICOs As Equities Markets Lose Momentum
  • 4 days Has The Stock Market Reached A Tipping Point?
  • 4 days Why Brazil’s Presidential Election Matters For Markets
  • 4 days Latin America’s Love-Hate Relationship With Crypto
  • 4 days Investors Panic As Market Correction Continues
  • 5 days “Rising Inequality” Could Impact America’s AAA Credit Rating
  • 5 days Ford Continues To Struggle As Trade War Escalates
  • 5 days Buy On The Cannons. Sell On The Trumpets.
  • 5 days India May Be Planning Its Own Government-Backed Cryptocurrency
  • 6 days Have Banks Hit ‘Peak Profitability’?
  • 6 days Big Tech Against The Wall As Privacy Concerns Mount
  • 6 days Giant Gold Deal Brings Hope To Precious Metals Markets
  • 6 days UK Prepares For Cyberwar As Relations With Russia Deteriorate
  • 7 days Erdogan Turns His Back On The IMF As Lira Crisis Worsens
Is This The Beginning Of The End For Facebook?

Is This The Beginning Of The End For Facebook?

Facebook has had yet another…

China Scrambles To Inject Liquidity Into Markets

China Scrambles To Inject Liquidity Into Markets

The Chinese government is clearly…

Tesla Close To Autonomous Driving Breakthrough

Tesla Close To Autonomous Driving Breakthrough

Elon Musk announced that Tesla…

Linas Jegelevicius

Linas Jegelevicius

Baltic Times

Linas Jegelevicius is a veteran Lithuanian editor and freelance journalist, and the editor-in-chief of the Baltic Times newspaper, the longest running English print news outlet…

Contact Author

  1. Home
  2. News
  3. Breaking News

European Union Hits Google With A $5 Billion Fine

Goog

How to set the size of a fine for a market behemoth like Google?

Well, consider first that you’ve finally seen a golden opportunity to fight well above your weight category. And it certainly feels good from a European perspective to start landing a few kicks to the body.

Even so, giant Google can take much harder hits than the European Commission’s mind-boggling $5-billion fine.

Then, consider that the US-EU trade rift is still sizzling, so if you’re on this side of the swamp, you just have to jump into the ongoing exchange of barbs and throw a couple of darts. It’s a “let’s teach the Americans” moment of reciprocity.

So, in setting the fine at a whopping $5 billion, Europe had revenge in mind. Plain and simple.

That’s not to say that Google isn’t untainted by any means. All giants have A tendency to abuse power, but the European Union’s executive body’s $5 billion fine against the US high-tech giant is staggering even to those not educated in the art of finanical punishment.

What exactly is Google’s grave sin?

Allegedly, since 2011, Google has imposed illegal restrictions on Android device manufacturers and mobile network operators to cement its dominant position in general internet search. Related: Iraq Unplugged: No Internet, No Protests, No Money

Google must now bring that conduct effectively to an end within 90 days or face penalty payments of up to 5 percent of the average daily worldwide turnover of Alphabet, Google's parent company--which, by the way, was slapped with the EU’s second-highest fine ever of 2.42 billion euro ($2.83 billion) last year for abusing its monopoly over internet searches.

Was the EU Antitrust unfamiliar with Google‘s transgressions and shenanigans, if any, throughout the years?

Of course not. The trade war and Trump’s refusal to grant them an exemption on Iran sanctions just forced them to stop turning a blind eye.

It’s also lost on no one that if Trump hadn’t won the elections, Google wouldn’t have gotten a $5-billion fine. With a pro-EU democrat at the helm, Google probably wouldn’t have been fined at all.  

This is not at attempt to advocate for Google, but fair is fair, and the EC’s record-high fine is incomprehensivel and even experts are having a hard time justifying it.

The European Commission's explanation that it has taken into account the duration and gravity of the infringement and that the fine has been calculated on the basis of the value of Google's revenue from search advertising services on Android devices in the EEA hardly sounds credible.

As of late June of 2017, the Commission had imposed pecuniary penalties totalling 8.472 billion euros ($9.54 billion) on businesses between 2013 and 2017 for breaking competition rules, according to the EU statistics. But its most disliked business is Google, which is told to pay half of the sum of EU Antitrust fines from the last four years.

The logic may be clear, but the mathematic substantiation is missing, which makes this personal and political. Google, thus, becomes a martry to the trade war indirectly.

By Linas Jegelevicius for Safehaven.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment