The European Union fines for Google over biased web product search results
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In an investigation that looked at the search results for Google products vs. competitor products, the European Union found Google guilty of promoting its own products in comparison-based search engine results.
This year reined in a new leader among global companies. Apple had been known as the world’s most valuable brand every year since 2011. However, a slip in market value this year for Apple meant Google now took over their spot as top world brand. However, a recent investigation by the EU’s anti-trust fund revealed an unfair advantage that might have aided in this top spot.
Google has been fined an unprecedented 2.42 billion Euros in a scandal that claims its comparison buying tools favored Google products consistently over the products of competitors. This fine includes claimant compensation, and is the largest fine that the European Union has ever given out. In addition to the fine, the EU anti-trust fund has ruled that the company must pay an additional 5% in global turnover (per diem) if it does not change its result habits in 90 days from the verdict.
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Google’s search engine results resulted in unfair treatment of rival companies. In addition to losing money on each sale, rivals lost almost 85% of site traffic. With SEO formatting and site traffic being one of the biggest ways that small companies make a continual profit, the impact on these small businesses was sometimes irreversible.
This scheme also targeted consumers, unfairly persuading them on which products to buy through use of marketing techniques that smaller rivals often did not have. Google purchase results were shown before any, at the top of the page, and with picture and formatting. Competitors were shown as hyperlinks beneath those results. This, as a result, made Google Shopping the number one hit in almost all UK online purchases. Studies have shown that shoppers are less apt to click on results that are not on the first page of their search, meaning this manipulation could have heavily persuaded buyers against purchasing from Google rivals.
Google plans to appeal this decision, and has made no other public remarks regarding the verdict. In reaction to this fine, supporters of the company have condemned it, saying that it will ultimately hinder the technological advancements that has made Google a rival of Apple for so long. Whatever the outcome, this fine will have global impact, possibly shaping the way that Google advertises worldwide.
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