Select Page

The EU has Google in its sights

by | 26 Mar, 2018

The European Union says it holds “grave suspicions” about Google’s dominance of the marketplace and has not ruled out breaking it up, to limit the damage to its competition. European Commissioner for Competition Margrethe Vestager (pictured) said over the weekend that the threat to split Google into smaller companies must be kept alive. 

The bloc has had Google and other top techs in its crosshairs for years, unveiling a new strategy on taxing them earlier this month. The firms share price has been slipping since mid-March anyway, but if the EU go ahead with the move it could signal more downward pressure.

The Danish commissioner also hit google with a record fine – £2.1 billion in June 2017, for giving its comparison shopping service an illegal advantage in search results. Given that Google has a 91.5 percent share of the search engine market in Europe, it’s no wonder authorities are concerned with its influence over the European markets.

Vestager said: “There is no ban on success in Europe. You get to be dominant and you get a special responsibility that you don’t destroy the already weakened competition.” She added: “We have proven their dominance in search and we have found they have misused this dominance to promote themselves and diminish competitors.”

Whether a message of ‘fair play’ can get through to Google, or Amazon, or any of the other American giants is unclear. Amazon have already decimated retailers across the US, and even a hint of them entering a new sector like healthcare can reap havoc on the share prices of pharmaceutical companies who would become their rivals. Similarly, Google is a powerhouse of online advertising and dominates its respective spheres of influence, but with that much power, comes responsibility, a value the EU is clearly hoping to instil.

Want to learn more about the markets and how to become a better investor?

Download the Invstr App now.

All emails include an unsubscribe link. You can opt-out at any time. ​See our privacy policy.

ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

Download on the App Store           Download on Google Play

ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

Share This