Massive fine for Google from the Competition Board

The Competition Board has imposed a 482 million lira fine on Google for the period during which it failed to implement remedy proposals regarding hotel queries, while also ending the periodic fine applied during the investigation into local search services.

In a statement on the Competition Authority's website, it was noted that Google holds a dominant position in the general search services market. It was recalled that the firm was found to provide its own local search (Local Unit) and accommodation price comparison (Google Hotel Ads-GHA) services with advantages in terms of position and display on the general search results page compared to its competitors.

The statement pointed out that Google hindered the activities of its competitors by preventing their entry into the Local Unit and caused a distortion of competition in the local search services and accommodation price comparison services markets. It was reported that the firm was fined 296 million 84 thousand 899 lira in 2021 after it was determined that it had violated the relevant article of the Law on the Protection of Competition.

The statement indicated that certain obligations were imposed on Google to remedy the violation and ensure effective competition in the market, and the following was noted:

"In this context, Google was required to ensure that competing local search services and competing accommodation price comparison services are not at a disadvantage compared to its own relevant services on the general search results page. In this direction, Google submitted remedy proposals containing new designs for local search services to eliminate the concerns pointed out by the Board in the 'local search services' market. Subsequently, at the Board's meeting on March 21, 2024, it was decided to implement these remedy proposals submitted by the firm and to monitor them for a period of 3 months."

The statement highlighted that during this process, it was determined that Google did not apply the new designs decided for "local search services" to hotel queries, and therefore did not fully fulfill the mentioned obligations. It was recalled that the Board had decided to impose a daily administrative fine on Google until the new designs for local search services regarding hotel queries were implemented.

The statement conveyed that Google finally completed the process on May 21 by implementing the designs, which were determined not to have been applied to local search services regarding hotel queries, and stated the following:

"In this direction, the Board has decided to terminate the daily administrative fine as of May 21 and to impose a 482 million lira fine on Google as a sanction for its failure to implement the new designs for local search services regarding hotel queries."

News Source: AA