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EU Set To Levy Record Fines Against Alphabet Inc (GOOGL)

GOOGL – Google will soon be slapped with record-breaking fines from the EU over promoting its own products in search results.

Alphabet Inc (NASDAQ:GOOGL) is in hot water with European regulators over allegedly giving its own products special treatment in its search results, and the day of reckoning — including possible record fines — is coming soon.

BGR has some details on just how large the fines could be:

The European Union has three antitrust investigations into Google’s business practices, including search, Android, and its advertising business. One of them is soon going to come to an end, and Google is facing a record fine in the case, which is expected to top EU’s €1.06 billion ruling against Intel from a few years ago.

Google’s fine could go up to 10% of its yearly revenue, which topped $90.27 billion last year, The Wall Street Journal reports. A decision should be announced in the coming weeks, although Google can still appeal it. In addition to paying the fine Google would likely have to make various changes to its search business in Europe.

The EU has been investigating the alleged misconduct since 2010. Google repeatedly tried and failed to come to a settlement several times since then.

After failing to meet the European Commission’s requirements, the regulatory body ruled against the company, and has been discussing potential punishment for the past several weeks. Along with a hefty fine, Alphabet will also likely have to change the way it handles search results for European users.

This initial punishment will probably be the first of three, since the company faces misconduct changes in its search, Android, and advertising businesses.

Alphabet Inc shares were unchanged in premarket trading Friday. Year-to-date, GOOGL has gained 21.17%, versus a 9.53% rise in the benchmark S&P 500 index during the same period.

GOOGL currently has a POWR Rating of A (Strong Buy), and is ranked #1 of 46 stocks in the Internet category.

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