Google offers shopping unit to placate EU
Google plans to create a new standalone unit for its shopping service after a landmark antitrust fine in the EU, according to Bloomberg sources.
The unit will bid against competitors for ads displayed in the prime ad panel at the top of shopping searches. Ten ad panel slots will go up for auction with Google Shopping operating as a solo unit to make clear the costs aren’t subsidized by the parent company. EU regulators found that Google had unfairly favored its own shopping services in search results over competitors. Regulators fined the company $2.8B this past summer.
Google has to comply with the EU antitrust decision this week. Failure to comply could cost up to 5% of daily revenue in additional fines.