The European Commission ruled that the company(Google) had abused its power by promoting its private shopping comparison service at the top of search.
The amount is the regulator’s largest fine to date against a corporation accused of distorting the market.
The ruling also orders Google to stop its anti-competitive practices in 90 days or face a further penalty.
The US firm announced it may appeal.
However, if it declines to change the way it operates the Shopping service in the three-month deadline, it could be required to make payments of 5% of its mother company Alphabet’s average daily global earnings.
Based on the company’s most recent economic report, that amounts to about $14m a day.
The committee said it was leaving it to Google to determine what changes should be made to its Shopping service rather than specifying a remedy.
“What Google has done is illegal under EU antitrust laws,” declared Margrethe Vestager, the European Union’s Competition Administrator.
“It has denied other businesses the chance to compete on their values and to innovate, and most importantly it has refused European consumers the benefits of competition, genuine choice, and innovation.”
Google had earlier suggested that Amazon and eBay have a major influence over the public’s spending practices and has again said it does not believe the claims made against it.
“When you shop online, you need to find the products you’re seeing for quickly and easily,” a spokesman said in response to the ruling.
“And sponsors want to promote those same products. That’s why Google gives shopping ads, connecting our users with numerous of advertisers, large and small, in ways that are useful for both.
“We respectfully object with the conclusions announced today. We will examine the Commission’s decision in detail as we consider an appeal, and we look ahead to continuing to make our case.”
The commission has the authority to fine Alphabet up to 10% of its yearly revenue, which was more than $90bn (£70.8bn) in its last financial year.
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