EU fine: US lawmakers 'asleep at the switch' on Google

Jun 28, 2017 at 07:42 pm by Staff


Publishers in the US and the country's News Media Alliance have come out in support of the European Union's action against Google.

Fines of 2.4 billion Euros ($2.7 billion) have been imposed for its alleged abuse of market power by favouring its shopping service over other comparison sites.

Google is likely to appeal, and has 90 days to do so.

News Corp was among US companies which wrote to European competition commissioner Margrethe Vestager in support of penalties against Google for "anticompetitive conduct". Others included Getty Images, Oracle and Yelp.

"As US-based companies, we wish to go on record that enforcement action against Google is necessary and appropriate, not provincial," they said. "We have watched Google undermine competition in the United States and abroad."

News Media Alliance president and chief executive David Chavern says the decision "clearly points to the need for US regulators to take more seriously the challenges posed by Google and other tech giants.

"Some may object to the EU moving so aggressively against US-based companies, but these authorities are at least trying to deal with some of the new competitive challenges facing our economy.

"US lawmakers and regulatory authorities, by contrast, have been 'asleep at the switch' for far too long."

Chavern (pictured) says Google dominates the digital advertising ecosystem, as it owns tech products on the buy and sell side of every digital ad transaction. "This end-to-end dominance is fuelled by consumer data that is collected along the way. "This dominant role allows Google to set the business terms and continually expand their ongoing dominance and market power.

"We need to begin to address such issues here, or be continually faced with other countries addressing them for us."

Sections: Newsmedia industry

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