Google to Create a Separate Shopping Service Unit to Meet European Union Demands

Google to Create a Separate Shopping Service Unit to Meet European Union Demands

The tech internet giant this year was hit with a $2.8 billion fine by the European Union (EU) for not adhering to antitrust rules and regulations of the commission. Although the internet is truly a global phenomenon, each region has its own laws. That is why online gambling sites are legal in some states but restricted in some.

Bloomberg has reported that Google plans to create a standalone shopping service unit to meet the demands made by the EU. The European Union regulators gave Google an ultimatum to comply with the demands within the set deadline or it will face the consequences.

This summer EU fined Google in relation to the way that the search giant was treating competitors comparison-shopping sites but this did not affect online casinos. The separate shopping service unit will require it to bid against rivals for ads that pop on the top of its search page. EU’s order is to give equal treatment to all shopping sites to show shopping ads on the Google’s results pages as it gives to Google Shopping. However, the shopping service will remain under Google even though it will operate separately. The internet giant will use its own revenues to bid for ads.

Google has been promoting its own shopping search results at the expense of competitors. The remedy will give its competitors an equal chance to compete. EU reported that if Google fails to comply with its demands, Google will be fined up to 5% of its daily revenues.

Alphabet’s (Google’s parent company) share price plunged when Google was slapped with the huge fine for breaching antitrust rules in June. Investors feared that they were going to lose out on their dividend payments. Despite the agreements to comply with EU demands, Google is still required to pay the fine. The tech giant is still challenging the rulings in court.

The new shopping service is a Google division only in Europe. Search results will show various pictures of products with website links of the retailers.

 

 

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