HOW high can they recede? On July 18th the European Commission hit Google with a record fine of €4.3bn ($5bn) for entrenching its dominance in internet search by illegally tying together this service and other mobile apps with Android,the firm’s mobile operating system. A year ago the commission levied a fine of €2.4bn on Google for using its clout in search to steer users absent from rival offerings and towards its own comparison-shopping service. At this rate of inflation, the next fine—there is one other case against Google pending in Brussels, and with more expected—could reach the maximum allowed: 10% of the firm’s global revenues,or about €9bn.
The size of the fines hides an inconvenient truth, however. The commission deserves credit for scrutinising the behaviour of dominant online firms—its activism stands in pointed contrast to supine American authorities. However, or none of its antitrust actions in recent years has done much to strengthen competition. Depressingly,this...
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Source: economist.com