The European Union has fined Google $5 billion for violating their antitrust rules — specifically, by forcing manufacturers of Android phones to install the Google search app and the Chrome Web browser. For years the EU has battled tech companies like Google to comply with regulations- last year even fining Google $2.72 billion for violations. More recently the EU fined Google $5 billion fine, setting a world record for highest antitrust penalty. If Google doesn't change its business practices, the cost could grow even higher, with penalty payments added after 90 days. Google intends to appeal the EU’s decision.
Despite this costly setback. Google saw its profit soar this quarter (26% higher than the year prior) while the companies stock was valued at an all time high on Monday. Google is making BILLIONS despite a $5 billion fine… could any other company achieve such high numbers after being hit with such a huge fine? Not only could Google pay this fine with ease, this penalty will barely, if at all, effect consumer loyalty. All around the world, Google has become a necessary piece of life- in Europe alone around 80% of smart phones use its operating system. Google is an essential part of our day to day life, which helps it bounce back from such a high monetary loss.
When a business or service becomes a necessity, is it then immune from any penalty? It may seem as though that is the case. However, I think that if there was a better website/system, Google would take a much bigger hit than what we are seeing right now. That is one way to excel in business- make yourself indispensable. That way, even if you take a big hit like Google has recently, you’ll still bounce back as though nothing even happened. That, and having loyal customers! If a $5 billion fine can’t stop Google, what will?