EU antitrust officials fined Alphabet Inc. (NASDAQ: GOOGL), the parent company of Google and several former Google subsidiaries, a record 2.42 billion euros ($2.7 billion) on Tuesday, according to Reuters.
The European Commission has given the search engine corporation 90 days to stop favoring its own shopping service or face a per-day penalty of 5 percent of Alphabet Inc.’s average daily global turnover.
The EU found that Google has been blocking rivals in online search advertising, and accused the company of prioritizing placement in searches to its own comparison shopping service and demoted those of rivals in search results. Google controls a market share in searches of over 90 percent in Europe.
Margrethe Vestager, the EU’s antitrust chief, said in a statement on Tuesday, “What Google has done is illegal under EU antitrust rules. It denied other companies the chance to compete on the merits and to innovate. And most importantly, it denied European consumers a genuine choice of services and the full benefits of innovation.”
The conglomerate has also been charged with using its Android operating system, implemented in most mobile smartphones, to restrict competition in software found on these devices.
"We respectfully disagree with the conclusions announced today. We will review the Commission's decision in detail as we consider an appeal, and we look forward to continuing to make our case," Kent Walker, Google's general counsel, said in a response to the EU.
Google cited its own data that showed consumers preferred links that take them directly to the products rather than other engines or websites where they would have to repeat their search.
Still, the penalty payment for failure to comply would amount to around $12 million a day based on Alphabet's 2016 turnover of $90.3 billion.