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Penalties for Google

Penalties for Google

Google must pay a fine of 1.49 billion euro (1.29% of the turnover for 2018) for blocking competing advertising companies, - said the EU Commissioner for Competition Margrethe Vestager.

"Google is abusing its dominant position in the advertising market and does not allow other companies to use the AdSense platform with other advertising solutions," Commissioner M. Vestager said in her speech in Brussels, justifying the imposition of serious penalties on Google for monopoly actions.

According to the data collected by the European Commission, Google and its founding firm Alphabet violated the antitrust legislation of the European Union, forcing partners to strictly comply with contractual obligations. Thus, the contracts stipulated that when using the AdSense platform, it is impossible to place ads advertising Google's competitors on the pages of their resources.

We are talking about the restrictions that were set by the Google-owned contextual advertising placement service AdSense. As established by the members of the commission, the violation consisted in the fact that, along with the Google search bar, the html-code of which was hosted by various sites, Google also required installing AdSense, and prohibited advertising its direct competitors through this service.

"Site owners and advertisers had less choice, and probably had to pay more, and the resulting additional costs were shifted to the shoulders of consumers," said M. Vestager.

However, it should be noted that small firms did not suffer from this in any way. For example, the web-studio of Alexander Ivanov (Moscow), specializing in advertising customer sites, these problems have passed.

"We have always believed that competitive and healthy markets are beneficial to everyone. Taking into account the concerns of the European Commission, we have made a number of changes to our software products. In the coming months, we will carry out additional updates of existing services in order to ensure visibility for our competitors in the European markets," said Kent Walker, vice president of public policy at Google, after the announcement of the information about the presentation of penalties.