Yahoo News Google hit by record European fine of £2.1 billion
Google has been given a record fine of £2.1 billion by the European Commission (EC).
The EC has ruled that Google abused its power by promoting its own shopping comparison service at the top of search results, BBC News reports, and it is the regulator's largest penalty to date against a company accused of distorting the market.
Google has also been ordered to end its anti-competitive practices within 90 days or face a further penalty, although the company has said it may appeal.
If it fails to change the way it operates its Shopping service within the deadline, it could be forced to make payments of 5% of its parent company Alphabet's average daily worldwide earnings, which are said to be around $14 million.
The ruling has left it to Google to change its Shopping service as it sees fit, rather than offering a change.
"What Google has done is illegal under EU antitrust rules," explained Margrethe Vestager, the European Union's Competition Commissioner.
"It has denied other companies the chance to compete on their merits and to innovate, and most importantly it has denied European consumers the benefits of competition, genuine choice and innovation."
Google has responded to the ruling by saying it does not accept the claims against it. "When you shop online, you want to find the products you're looking for quickly and easily," a spokesman replied.
"And advertisers want to promote those same products. That's why Google shows shopping ads, connecting our users with thousands of advertisers, large and small, in ways that are useful for both. We respectfully disagree with the conclusions announced today."
Following a search, Google Shopping shows images and prices of relevant products, alongside shop names and review scores if available. These results include "sponsored" products that appear as a result of sellers having paid.
The EC has been investigating Google Shopping since late 2010 after complaints from Microsoft, among others.
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