GOOGLE RULING
TRUDI MAKHAYA: How reputational damage may be more of a deterrent than fines for companies
These companies make so much money that it seems like a slap on the wrist no matter how big
Last week, the European Commission slapped Google with a €2.4bn fine for anticompetitive behaviour perpetrated in the EU. It could go higher. The commission has given the company 90 days to rectify its conduct or face an additional penalty of up to 5% of its parent company’s average daily global turnover for noncompliance with the order after the grace period. The commission found Google abused its market dominance as a search engine by giving an illegal advantage to its comparison shopping service at the expense of rivals such as Yelp and TripAdvisor.Censure for oil spills, financial shenanigans leading up to the global crisis and failure to comply with Know Your Customer requirements are some of the practices that have attracted megafines from regulatory authorities. The objective of these fines is to punish and deter corporate malfeasance. There is debate as to whether such financial penalties are effective. It is argued that these could be written off as costs that were implicit...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.