Google is in a very delicate situation in Europe at the moment, because the European Union is preparing to apply a record fine to it for abusing its dominant position on the market. More precisely, following an investigation of several years, the European Union wants to impose a fine of over 1 billion euros against the Google company.
This fine is based on the fact that Google abused the dominant position of Google Search, Android and Google Adsense/Adwords services. Because of the way Google would have behaved on the European market, the EU wants to apply a fine that is higher than the one applied to Intel a few years ago, which is 1.06 billion euros.
It is estimated that the EU would like to apply to Google a fine equivalent to 10% of its annual revenues, which exceeded 90 billion dollars last year. The figure is a colossal one, so it is unlikely that the EU will impose a fine of 9 billion dollars against Google, but it could impose an equivalent one for the revenues generated from Europe.
Google - record fine prepared by the EU
Considering the intentions of the EU, it is quite clear that Google generated cash of over 10 billion euros in 2016 in Europe, so the fine could be within their means. After the announcement of the fine, those from Google will be able to appeal against it, but if they lose, they will have to pay it and make changes that do not favor its European services.
The European Union began to investigate Google in 2010 for apparent abuses made on the basis of the services it has active in the European territory. Google and the EU discussed to reach an agreement and end the investigation, but this did not happen, so now the American company will continue the fight in court to avoid a colossal fine.
"The European Union's antitrust watchdog in the coming weeks is set to hit Alphabet Inc.'s Google with a record fine for manipulating its search results to favor its own comparison-shopping service, according to people familiar with the matter. The penalty against Google is expected to top the EU's previous record fine levied on a…”
Google Search, Android and Google Adwords/Adsense are the biggest services/mobile operating system on the planet, so Google is in a dominant position. Whether or not Google abused the position it has, it is difficult to say, but it is unlikely that the Americans will pay a fine of over 1 billion euros that the EU would like to impose.
