Alphabet dips on report that EU is prepping huge fine
Alphabet dips on report that EU is prepping huge fine
The ruling from EU commissioner Margrethe Vestager could
come within weeks, the Financial Times reported.
It's one of three investigations launched by the EU into
the U.S. tech giant.
The exact penalty amount is unclear, but the commission
has the authority to impose a fine of up to $11 billion.
By Sara Salinas Published June 6, 2018 Updated CNBC.com
Shares of Alphabet fell Wednesday following a report that
European Union officials will hit the company with a "negative
result" and a fine of up to $11 billion for abusing its dominance through
the Android mobile operating system.
The ruling from EU commissioner Margrethe Vestager could
come within weeks, the Financial Times reported, citing unnamed sources. The
exact penalty amount is unclear, but the commission has the authority to impose
a fine of up to $11 billion.
Shares of Alphabet were down less than a percent
immediately following the news after trading practically flat for much of the
day.
It's one of three investigations launched by the EU into
the U.S. tech giant, amid growing concerns around tech monopolies.
Critics and lawmakers have advocated for breaking up
dominant tech giants like Google, Amazon and Facebook. So far the biggest
threat to Silicon Valley has come out of Europe.
Alphabet warned investors last year that fines resulting
from the EU's investigations could land in 2018. The company was previously
fined a record $2.7 billion for using its dominance in search to unfairly point
people to its own comparison shopping service.
The European Commission opened its investigation into
Android in 2015, following a complaint two years earlier from the lobbying
group FairSearch.
A 2016 document seen by Reuters said the EU competition
enforcer planned to levy a large fine against the company and would order it to
stop giving revenue-sharing payments to smartphone makers to pre-install only
Google Search.
The company did not immediately return requests for
comment from CNBC. EU officials declined comment to CNBC.
—Reuters contributed to this report.
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