Why in news?
European Union’s competition watchdog has fined Google with 2.42 billion euro.
What was the reason?
- ‘Google Shopping’ is Google’s own price-comparison website.
- Google is alleged of abusing its position of dominance in the market by favouring products listed on ‘Google Shopping’, over those on competing websites.
Is the judgment justified?
- The fine is still considered baseless because businesses can have a valid economic reason to showcase certain products more prominently than others.
- Advertisements can be considered faulty and punishable only if the standards are not met.
- Google holds over 80% of the market share in Europe’s search engine market.
- But it is not a legal monopoly, as anybody is free to compete against it.
- So this did not call for an economic regulation by EU.
- The decision also rejected the pro-consumer product design of Google Shopping.
What should be done?
- It should be ensured that EU’s regulatory overreach is not a barrier for innovation and consumers.
- Innovations that benefit consumers must be properly differentiated from those that hurt competitors.
Source: The Hindu
