We all live in an ear of Internet. Today it has become a basic need for everyone. From child to an old person everyone is using it for their convenience.
The Internet is the world’s largest communication base and a network connecting millions of computer users. Because of internet only, lives have become more easy and fast as compared to the time of not having internet.
An individual can find various types of information about the world through the power of the internet. This is a fortunate thing for students and even people as it helps to find answers to their questions. The internet made everyone to search anything according to one’s need. Most popular use of internet is to search and its most famous search engine that is Google.
Google is the most popular search engine all over the globe. It is having all answers to our questions. It is getting more helpful from telling directions to getting information regarding every field of the world. It has also provided many benefits like advertising, time saving and it also a health advisor.
But recently it has been found that some countries like Europe are facing issues with Google. European government has imposed some charges on Google.
Thus, this article with what was the reasons behind the issues and what are the results of the issue.
What were the reasons behind the issues with Europe?
In the past two years Google has faced three anti- trust issues with European Commission (EC). According to the European Commission the Google has violated EU competition law like barriers to market entry and exit or switching costs.
The commission has also charged that having overriding position in market is an evidence of abusive conduct, such as it will eliminate actual or potential competitors and also exploiting consumers.
Since 2010 European Union has started antitrust investigation against Google for violating EU’s laws.
These Google cases involve three main issues that were Google Shopping, Google AdSense and the Android operating system. The main reasons for allegation were that Google manipulate its search result and always puts its own services higher than competitors.
The EU’s allegations also include that Google put a condition before its manufactures that if they want grant to license for Google’ property apps like Play store which is the key market place for all the manufactures than they have to firstly install Google search and its chrome and make them their default search services.
In November 2010 under Article 9 of Regulation 1/2003 a formal investigation was started against Google as complaint was filled by many competitive companies that Google universally only promotes its own products by downgrading the placement of results of competitive companies.
Further they added that Google is discriminating the presentation of search results of other companies on the merit of products and services.
“The Commission’s preliminary view is that to remedy the conduct, Google should treat its own comparison shopping service and those of rivals in the same way,” stated the Commission. The commission through its above statement just wanted to indicate that service provided by the other competitive firms must be equally treated with the services of Google.
Then in June 2017, Google was found guilty of its acts and was fined with €2.4 billion (about US$2.7 billion), the fine was just 2.5% of the Google revenue of 2016.
Firstly let’s discuss what is Google AdSense? It is a program run by Google through which Google publishers serve contents like videos, audios and advertising contents. These all activities are maintained and look after by Google. These AdSence works as a advertising link of between different content, search etc.
While doing investigation EC found additional evidence related to the AdSense and filed complaints against it in July 2016 referring that Google only use its own Google AdSence rather than engaging and taking help of other companies in the market.
Moreover Google partners put their ads in front for promoting their services and over the ads of other companies which was against the market rule.
Then in 2019 Google also found guilty for this offence and was fined with 1.49 € billion for its rude and insulting practice against other firms in the market.
On further investigations EU’s found out that Google services are pre-installed on smart phones which often leads to more gains to it, as Google search appears on the home screens of smart phones. Google also compacted with popular Android mobile operating system so that, its search engine can get such prized placements and this step of Google has leaving no room for other rivals in the market.
The commission stated that the Google has used its dominating position unlawfully in the mobile market. It was stated that manufacturers cannot pre-install the proprietary Google apps, including the Play Store, as open source can be used by anyone, can be alter and changed but using Google apps just belong to closed source which can be only used by the firms having licensed by Google.
This type of behavior of Google has made other companies and firms difficult to survive in the competitive market as Google will remain dominant and will be the monopoly firm.
On this allegation in July 2018, EU fined Google with €4.3 billion (about US$5 billion).
Google is known to be the most popular search engine all over the world. It has gained reputation by its work and services to the people. Today everyone is using Google for their benefits like shopping, search, maps and getting information. It is playing a very vital role in everyone’s daily life and it is also becoming a part of everyone’s life.
But this does not mean that it will use this power and reputation in a wrong way. It is providing a vital service but it should not work illegally and violate the laws of country.
From above discussion it has been found that if Google will not change its rules and regulation then in coming times it will lose its reputation.
As EU has imposed heavy fines on Google against the allegations, that can lead to financial problem for it. If Google will not stop its illegal work than in future a time will come that no one will use it as no country will bear such type of nature from big companies.
Market is made for everyone that every firm can sell its product and services to consumers and gain profit monopoly is necessary for some firms but that does not mean that every firm of the market tries for it.