Alphabet Inc. a parent company of Google will create a standalone shopping service unit to satisfy European Union concerns over the display of product results. Now Google would bid against rivals in the AdWords auction as a separate entity.
As stated by Bloomberg, The internet giant Google will create a separate business unit to handle shopping content in search results to meet the terms with the European Commission’s latest antitrust decision. The unit will allegedly be required to struggle in the auction against other shopping competitors of the market such as Amazon, Flipkart, eBay etc. It seems that the unit would its own budget and profits to bid in the auction and will only survive in the European Union. Shopping search will persist in different markets including the United States.
Reuters had previously reported that the tech company Google was going to show competitors shopping comparison sites through an auction. That approach seemed to be a similar short of ‘rival links’ proposal, which failed to resolve the antitrust dispute before an official complaint was filed in the year 2015.
Internet behemoth Google was penalized round about $2.7 billion for ill-treatment of market position in shopping search. The fine was a massive antitrust penalty in European Union history as the earlier records revealed the largest fine of $1.3 billion against Intel Company. According to the decision, Google is bound to provide a remedy, even as it pleads that decision. Failing to comply with the decision, Google would be subjected to pay daily financial penalties.
In a Bloomberg article, it is suggested that the new business unit concept is the latest proposal vs. the previous Reuters report. Though, Reuters probably have inaccurately described the Google proposal.
In the new configuration, it will feature 10 slots that are going to be made accessible via the auction. Every search result would show the name of the shopping website providing the product and link to those sites – explored Bloomberg’s report.
The Google shopping is supposed to be branded by Google and those from other websites will be labeled accordingly.