Search giant Google could face a 500 million dollar fine if a U.S. Justice Department investigation finds internet's most powerful company breaching competition laws by favouring its own services in ads.
Search giant Google could face a 500 million dollar fine if a U.S. Justice Department investigation finds internet's most powerful company breaching competition laws by favouring its own services in ads.
According to the Daily Mail, regulators are examining whether Google unfairly manipulates its search results to favour its own services and rigs its advertising system to drive up prices.
ADVERTISEMENT
The disclosure was made in Google's quarterly report to the Securities and Exchange Commission, as the search giant comes under intensifying regulatory scrutiny.
Similar investigations are being carried out in Europe and by the Texas Attorney General.
Google's lucrative advertising network, which primarily delivers short text ads alongside search results and other web content, is the main way the company makes money.
u00a0In the first three months of this year alone, Google sold 8.3billion dollars in advertising.
u00a0In its SEC report, Google said its management decided earlier this month to set aside 500 million dollars to cover a possible settlement.
That move resulted in a change to the company's first-quarter earnings, announced in mid-April, after its net income fell from the previously reported 2.3billion dollar to 1.8billion dollar.
Investors are worried whether the regulatory scrutiny will make it more difficult for Google to counter emerging competitive threats from hard-charging rivals such as Facebook.
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
