Google has decided to split off its shopping service, Google Shopping, to meet demands from the European Union. The European Union wasn’t particularly satisfied with the way Google displayed product search results, prioritizing results from Google Shopping in favour of results from competitors.
Now, Google splits off Google Shopping according to Bloomberg’s report. It will create a standalone service, which will be required to bid against rivals for ads shown on the top of its search page. Bloomberg bases its news on sources who asked to not be named as negotiations are private. They say the shopping service will remain part of Google but will operate separately and use its own revenues to bid for ads.
Fine
Google got a fine of a record-breaking €2.4 billion euro by the European Commission in June, after it was accused of abusing its dominant position and promoting its own comparison service - Google Shopping - over those of its competitors.
90 days to change behaviour
Google got 90 days from the European Commission to change this behaviour. This deadline ends this coming Friday. If the deadline won’t be met, Google will have to pay up to 5 percent of its parent company Alphabet’s global daily revenue.
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