Google has been fined 2.42bn euros, around £2.1bn, by the European Commission after it was revealed the company had abused its power by promoting own shopping comparison service at the top of search results.
The fine is the regulator’s largest penalty to date with regards to accusing a company of distorting the market.
How will this affect your business?
This could either be great news or a recipe for disaster for your business. The Google penalty can affect your business if you have invested time in getting your products into the Google Shopping results, your hard work may soon disappear if the Google Shopping pages disappear from the first page. However, if you’ve never used the service, it may just be the best time to. With the use of the right SEO services, time and dedication, you could soon be reaping the benefits of appearing in the top results.
What is the Google Shopping service?
The shopping service was invented by Google to allow users to search for products on online shopping websites and compare prices between different companies. Originally, the service listed prices submitted by merchants, which was then monetised through AdWords advertising, just like other Google services.
In May 2012 however, Google announced that the service, renamed as Google Shopping, would shift to a paid model where merchants would have to pay the company in order to list their products on the service.
How did the European Commission find out?
The EU Commission have been investigating Google Shopping since late 2010. The probe was spurred on by complaints submitted by Microsoft, amongst others. Original complainants have welcomed the announcement, expressing that Google’s search engine has played a “decisive role” in determining what we read, use and purchase, enabling Google to carry out “immensely harmful search manipulation practice”.
What does the ruling mean?
The ruling has ordered Google to end its anti-competitive practices within 90 days or face a further penalty. Google have said that they are planning to appeal the fine. If Google fail to change the way it operates the Shopping service within the set three-month deadline, Google could be forced to make payments of 5% of its parent company Alphabet’s average daily worldwide earnings. Based on the recent financial report, this could amount to around $14m a day.
For more information on SEO, PPC, Social Media, and Web Design services, please visit www.freelanceseoessex.co.uk today.
The fine is the regulator’s largest penalty to date with regards to accusing a company of distorting the market.
How will this affect your business?
This could either be great news or a recipe for disaster for your business. The Google penalty can affect your business if you have invested time in getting your products into the Google Shopping results, your hard work may soon disappear if the Google Shopping pages disappear from the first page. However, if you’ve never used the service, it may just be the best time to. With the use of the right SEO services, time and dedication, you could soon be reaping the benefits of appearing in the top results.
What is the Google Shopping service?
The shopping service was invented by Google to allow users to search for products on online shopping websites and compare prices between different companies. Originally, the service listed prices submitted by merchants, which was then monetised through AdWords advertising, just like other Google services.
In May 2012 however, Google announced that the service, renamed as Google Shopping, would shift to a paid model where merchants would have to pay the company in order to list their products on the service.
How did the European Commission find out?
The EU Commission have been investigating Google Shopping since late 2010. The probe was spurred on by complaints submitted by Microsoft, amongst others. Original complainants have welcomed the announcement, expressing that Google’s search engine has played a “decisive role” in determining what we read, use and purchase, enabling Google to carry out “immensely harmful search manipulation practice”.
What does the ruling mean?
The ruling has ordered Google to end its anti-competitive practices within 90 days or face a further penalty. Google have said that they are planning to appeal the fine. If Google fail to change the way it operates the Shopping service within the set three-month deadline, Google could be forced to make payments of 5% of its parent company Alphabet’s average daily worldwide earnings. Based on the recent financial report, this could amount to around $14m a day.
For more information on SEO, PPC, Social Media, and Web Design services, please visit www.freelanceseoessex.co.uk today.