EU hits Google with $2.7B fine for abusing weaker rivals

European Union Commissioner for Competition Margrethe Vestager speaks during a media conference at EU headquarters in Brussels on Tuesday, June 27, 2017. The European Union's competition watchdog has fined internet giant Google over its online shopping service. (AP Photo/Virginia Mayo)
European Union Commissioner for Competition Margrethe Vestager speaks during a media conference at EU headquarters in Brussels on Tuesday, June 27, 2017. The European Union's competition watchdog has fined internet giant Google over its online shopping service. (AP Photo/Virginia Mayo)

BRUSSELS (AP) - European regulators fined Google a record 2.42 billion euros ($2.72 billion) for abusing its dominance of the online search market in a case that could be just the opening salvo in Europe's attempt to curb the company's clout on that continent.

The decision announced Tuesday by the European Commission punished Google for unfairly favoring its own online shopping recommendations in its search results. The commission is also conducting at least two other probes into the company's business practices that could force Google to make even more changes in the way it bundles services on mobile devices and sells digital advertising.

Even so, Europe's crackdown is unlikely to affect Google's products in the U.S. or elsewhere. But it could provide an opportunity to contrast how consumers fare when the company operates under constraints compared with an unfettered Google.

The fine immediately triggered debate about whether European regulators were taking prudent steps to preserve competition or overstepping their bounds to save companies being shunned by consumers who have overwhelmingly embraced an alternative.

Margrethe Vestager, Europe's top antitrust regulator, said her agency's nearly seven-year investigation left no doubt something had to be done to rein in Google.

The fine was the highest ever imposed in Europe for anti-competitive behavior, exceeding a $1.18 billion penalty on Silicon Valley chip maker Intel in 2009.

The penalty itself is unlikely to leave a dent in Google's finances. Parent company Alphabet Inc. has more than $92 billion in cash, including nearly $56 billion in accounts outside of the U.S.

The findings in Europe contrasted sharply with those reached by the U.S. Federal Trade Commission in a similar investigation of Google completed in 2013. The FTC absolved Google of any serious wrongdoing after concluding that its search recommendations did not undermine competition or hurt consumers.

Google's misbehavior in Europe boiled down to its practice of highlighting its own online shopping service above those of its rivals. Merchants pay Google for the right to show summaries of their products in small boxes displayed near the top of search results when someone seems to be interested in a purchase.