Google just lost a years-long investigation into its search results, and the stock price is slipping.
Shares of Alphabet, Google’s parent company, dropped 1.06% to $US961.80 in premarket trading on Tuesday.
The European Commission has fined Google $US2.7 billion over unfair favouring of Google’s own shopping search results over competitors. The fine comes after years of legal battles, and Google has said it will appeal the ruling. The Mountain View-based company is still battling two other antitrust investigations in the EU.
The fine is more than double the largest previous antitrust fine in the EU. Intel had to pay nearly $US1.45 billion in 2009, according to the New York Times.
Google now has 90 days to change the practices that were deemed unfair. The penalty for not complying in time could mean “penalty payments” as high as 5% of daily turnover for the company.
The enormous fine represents only .4% of Alphabet’s market cap of $US671.88 billion. Alphabet’s revenue in 2016 totaled $US90.7 billion, and Google represented $US89.5 billion of its parent company’s revenues, according to SEC regulatory findings.
Alphabet’s stock is dropping in pre-market trading. Shares dropped 1.06% to $US961.80 early on Tuesday. The company is up 20.5% this year.
Get the latest Google stock price here.