Google to create 'separate' shopping unit to avoid European Union fines

Getty Images

In June the commission fined Google €2.4bn (£2.1bn), saying it had broken competition law by highlighting the shopping service in its searches at the expense of price comparison sites like Foundem and Kelkoo.

"We're giving comparison shopping services the same opportunity to show shopping ads from merchants on Google's search results pages as we give to Google Shopping", Al Verney, a spokesman for Google in Brussels, said.

While the shopping service will remain part of Google, it will operate separately and use its own revenues to bid for ads, the report said. Fines for failing to meet the Thursday deadline could have been as high as 5 percent of the average daily global revenue of Alphabet, Google's parent company. Google had until September 28 to comply with the commission's ruling or face fines of up to 5 percent of its daily revenue. Reuters reported that the will allow rival firms to bid for spots, known as "Product Listing Ads" on its Shopping service.

Its retooled system for injecting shopping ads at the top of Google search results is available in the European Economy Area countries and Switzerland - i.e. places where its comparison shopping service and shopping ads are regionally available.

The EU targeted Google Shopping in a seven-year antitrust investigation that culminated in the fine this June.

In a bid to keep the Commission happy, Google will reportedly make changes to a panel that contains 10 advertising slots at the top of the search results page, a Bloomberg source reportedly said.

Google formally offered its solution to avoid more European Union mega-fines on Wednesday, proposing to run its controversial shopping service as a standalone business.

Google has upped its remedy offer to the European Commission over the price comparison shopping scuffle. Google declined to comment. "It denied other companies the chance to compete on the merits and to innovate".

She added: "Google has come up with many innovative products and services that have made a difference to our lives. We will review the Commission's decision in detail as we consider an appeal, and we look forward to continuing to make our case".

On the one hand, such a move would separate Google's search business from its shopping service.

The EU competition commission is believed to be readying an even larger fine, possibly as soon as next month, for this, but will likely also require further remedies.

Related news:

Hot News

isis-killer-beheading-video-story-top Donald Trump's Controversial Border Wall is Going Up
Sep 29, 2017 - 00:41
All of the walls will be between 18 to 30 feet high and 30 feet long, according to the San Diego Union-Tribune. US Customs and Border Protection (CBP) spokesperson Carlos Diaz described the incident as a "misstep".

isis-killer-beheading-video-story-top Twitter to begin testing 280-character limit for tweets
Sep 28, 2017 - 00:43
Others, meanwhile, were concerned that the additional characters would allow US President Donald Trump to Tweet even more. Love 'em or hate 'em, tweets are about to get a whole lot longer. "That is something we will never change", Rosen said .

isis-killer-beheading-video-story-top Khloe Kardashian Pregnant: Expecting Baby With Tristan Thompson
Sep 28, 2017 - 00:39
While this will be Kardashian's first child, the hoopster has a 9-month-old son , Prince , with ex-girlfriend Jordan Craig . It's like she and Kanye had gone on this whole journey to get pregnant for months, and now this happens to Kylie .

isis-killer-beheading-video-story-top Russian Federation and USA to build new space station to orbit the Moon
Sep 28, 2017 - 00:39
That mission, which would see astronauts orbiting the planet rather than actually touching down, is still being conceptualized. The official was speaking on the sidelines of the International Astronautical Congress in Adelaide, Australia on Wednesday.

isis-killer-beheading-video-story-top Sorry, kids: Apple's new Face ID isn't meant for you
Sep 28, 2017 - 00:38
Interestingly, Apple also details how Face ID will keep up with changes to a user's face over time. If you're still anxious about Face ID, you can read Apple's entire security guide at this link.

isis-killer-beheading-video-story-top Siemens and Alstom join forces
Sep 28, 2017 - 00:36
By Joe Quirke0 CommentsGerman conglomerate Siemens are to merge their mobility business with French rail company Alstom. Alstom Chief Executive Officer Henri Poupart-Lafarge will keep his position and the chairman will be named by Siemens.

Tony Cascarino's Arsenal v West Brom talking points
Sep 27, 2017 - 00:54
West Brom now sit 12th on the Premier League table and Pulis concedes that his side were too wasteful in front of goal to take anything from the match.

isis-killer-beheading-video-story-top Olympics: JOC 'looking forward to Pyeongchang'
Sep 27, 2017 - 00:53
The IOC said it was helping North Korea prepare its athletes for the Games and would cover costs of their equipment if needed. Other Winter sports powerhouses said they were monitoring developments but had no plans to miss the Olympics.

isis-killer-beheading-video-story-top Ivanka Trump to visit Detroit on Tuesday to promote STEM education
Sep 27, 2017 - 00:53
General Motors CEO Mary Barra is endorsing a new initiative by the Trump administration to increase support for STEM education.

isis-killer-beheading-video-story-top US Flies B1-B bomber Mission off of North Korean Coast
Sep 27, 2017 - 00:52
Dave Benham, noted that this century "encompasses the period North Korea has been testing ballistic missiles and nuclear weapons". There also existed the risk that obsolete North Korean interceptor aircraft could have crashed during a night flight, he added.

isis-killer-beheading-video-story-top Southern California wildfires force thousands to evacuate their homes
Sep 27, 2017 - 00:52
Overnight, five helicopters with night-vision and three planes tried combating the wildfire from above. Monday, about 40 residents had gathered at an evacuation center opened at Corona High School.

isis-killer-beheading-video-story-top Prince Harry holds hands with Meghan Markle at Invictus Games
Sep 27, 2017 - 00:49
Harry reportedly sat four rows and a section away beside USA first lady Melania Trump and Prime Minister Justin Trudeau . Meghan Markle was spotted alongside boyfriend Prince Harry at the 2017 Invictus Games in Toronto this past weekend.

isis-killer-beheading-video-story-top Russian airstrikes hit US-backed forces in Syria' Deir al-Zour
Sep 27, 2017 - 00:48
Backed by the US , the PKK/PYD on September 9 began advancing into Deir ez-Zor without encountering any resistance from Daesh. The jets did not injure coalition forces, but the SDF said six of its fighters were wounded in the strike.

isis-killer-beheading-video-story-top Apple's iPhone 8 Plus Apparently Costs $295 To Make
Sep 27, 2017 - 00:43
The risk of fracture, a disadvantage of this design improvement of lacquer , is no longer confined to device's screen. The reports follow a distinctly lukewarm launch for the lower-end iPhone 8 , with pretty tiny queues around the world.

isis-killer-beheading-video-story-top Target Says It Will Raise Minimum Wage To $15/Hour By 2020
Sep 26, 2017 - 00:46
With Target's out-sized influence in the retailing world, its hike could force rivals to match the pay in order to compete. Target is raising its employees' minimum hourly wages to $11 and plans to bump their pay to $15 an hour by end of 2020.