Google separates shopping service to comply with EU regulations


Google is creating a separate unit for buying ads within its shopping service, Bloomberg reports. Google Shopping will remain a part of Google, but it will operate independently and sell ads based off of its own revenues. It will be treated in Europe the same way Google treats its "Other Bets" businesses all housed under Alphabet Inc., like Verily, Nest and Waymo.

Why it matters The move comes months after European antitrust officials slapped Google with a massive $2.7 billion fine for abusing its market dominance as a search engine to steer customers to its own Google Shopping platform. By separating the shopping unit, Google can avoid paying a penalty of up to 5% of its daily revenue while it appeals the decision.