Google could pay as much as $9 billion in fines in August if found guilty of breaching the EU antitrust rules. The Alphabet’s unit was accused of manipulating internet search results in favor of its shopping service.
The EU regulators are expected to release the results of its seven-year investigation by August this year. According to Reuters, the fine could reach up to 10 percent of the company’s global turnover last year. Google will also be ordered to stop doing its anti-competitive measures, which hurt its rivals and consumers.
The most popular internet search engine in the world tried three times to settle with the European Commission to avoid fines but was rejected by former commissioner Joaquin Almunia. Margrethe Vestager, the current commissioner, is also not willing to settle.
Aside from the shopping case, Google is also facing an allegation that it is blocking rivals from its Android operating system and in online search advertising in its “AdSense for Search” platform. These could also result in huge fines from the EU.
These regulatory risks are affecting investors’ sentiment towards the company. On Friday, CFRA analyst Scott Kessler downgraded Alphabet from “strong buy” to “buy” because the stock is not “compellingly priced.”
“If the EC proceeds with penalties — people are aware of the size of that fine, and that Google has more than enough funds…to cover that. I don’t know that the financial fines would be the most significant negative,” Kessler told CNBC. “I do think that something like that could very well have a chilling effect of Google’s, and Alphabet’s, ability to be more aggressive on a number of different fronts. At the least, that should be a negative,” he added.
The company has so far seen an almost 26 percent rally this year, which exceeded the 9 percent rise of the S&P 500.
Medical Microinstruments Raises an Impressive Amount of $110 Million
Thanks to its technology, surgeons will be able to perform anastomoses in very small vessels and nerves, with applications in...
Shimmer Airdrop Campaign a Success? The Interim Conclusion is Double-Edged
The results of Shimmer so far show little response and efficiency given the high costs for the advertising campaign. The...
Czech Republic Bans HHC: New Regulations Change the Market
The Czech Republic's decision to ban HHC highlights a growing global debate about how best to manage psychoactive substances. While...
Gotham Insists on Projecting Its Doubts on Grifols
This counterattack by Gotham comes weeks after Grifols has received accolades following the confirmation of the sale to Haier of...
Argentina Lithium & Energy Leading the Charge as Demand for Argentine Lithium Grows
In response to surging demand from automakers for lithium, Argentina Lithium & Energy Corp. has entered into a major US$90...
Biotech1 week ago
Biogen Reaches $9.8 Billion in Revenue in 2023, Down 3%
Business2 weeks ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Libertex Affiliate Program]
Markets4 days ago
A Look at the Vibrant Inflation and Slowing Economy in the US
Biotech1 week ago
Eight Out of Ten Spanish Companies in the Biotech Sector Increase R&D Investment