Google fined 2.7 billion dollars by EU for algorithm manipulation

Today, the European Union fined Google 2.7 billion dollars after finding that it manipulated its algorithm unfairly to give its price comparison service Google Shopping an unfair advantage over competition.
Photo credit: Reuters/ Channel 2 News

Today (Tuesday), Google was fined 2.42 billion euros (2.7 billion dollars) by the European Commission on Competition. The reason for the fine was a manipulation of the company’s search algorithm, which provided an unfair advantage to its price comparison service Google Shopping.

The manipulation prioritized Google Shopping’s results, causing damage to other price comparison sites. The fine was determined after a 7-year investigation conducted by the EU. “Google abused its market dominance as a search engine by promoting its own comparison shopping service in its search results,” stated Commissioner Margrethe Vestager. “And demoting those of competitors.”

Photo credit: Reuters/ Channel 2 News

This is the largest fine ever given by the EU Commission. In 2009, Intel was fined 1 billion euros. In addition to the fine, if Google doesn’t change its algorithm, it will have to pay daily penalty payments of up to 5 percent of its parent company Alphabet’s daily global revenues- estimated at approximately 4.5 billion dollars. The technology giant is expected to appeal the EU’s decision.

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