On Tuesday, the European Union announced their decision to impose a hefty tax on Google. This tax amounts to $1.2 billion. The decision was made after Google was accused of abusing its monopoly power over the internet search.
The EU accused Google of not only manipulating search engine results, but manipulated them in favor of their new shopping service. This will affect the smaller websites in price comparison.
This fine is higher than the $1.1 billion that Intel paid in 2009. The EU also demanded Google to make changes in the search results so that it does not favor their shopping services.
The initial complaint was launched in 2010 after a series of complaints were received where Google favored their services through price comparison. With 90 percent search rate in Europe, this is a powerful tool so as to make internet users to navigate the web.
Google in a statement said their entry into online shopping space has proved to be good for consumers and retailers. It also argued that it was not a monopoly player in online shopping.
