In a landmark ruling on Tuesday, seven years in the making, the European Union fined Alphabet Inc’s Google, a record $2.7 billion dollars. Google’s alleged crime, which it denies, was to favor its own search entity over those of its rivals. The anti-trust regulators further decided that they can use the decision to control everything Google does.
This will have far-reaching implications for Google and how all Tech companies operate, especially in the EU.
According to Competitive Enterprise Institute experts, the European regulators view American companies as nothing more than an “ATM or a punching bag”.
CEI calls the decision flawed, but it’s so much worse than that. The EU regulators think the state should take the place of innovation in the marketplace.
Microsoft was also fined by The European Commission because they were too successful ten years ago. Worrying about dominant actors is unnecessary. None of these dominant actors stay on top for long, the marketplace changes and so do the actors, as CEI’s Vice President for Strategy, Iain Murray said.
Hurting Google hurts the customers and limits wealth creation and economic growth
This decision, CEI says, presents a real threat to the American economy. Wayne Crews, CEI’s Vice President for Policy, weighed in on the EU decision:
“Antitrust is one of the gravest threats to the technology sector, international competition, and consumer welfare. The premise of this decision and fine from the European Commission is flawed.”
The complaint by the EU antitrust is that Google denied other companies the chance to innovate but the opposite is true, he said. It is the Internet that has widened choice. Restrictions in competition cause higher prices and reduced quality, Crews continue.
The worst part of the decision is the EU regulators believe it could be used to determine the “legality’ of whatever else Google does.
Other companies don’t have to innovate to succeed under this flawed EU system, they just wait for the state to push their competitors around and take their wealth.
The U.S. largely created antitrust, CEI reports, and it has been one of our worst exports to the rest of the world.”
Read the entire story at The Competitive Enterprise Institute.