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Google fined by France $ 167 million against advertisers for abuse of power

We have become quite used to the fact that Internet companies are moody about their users’ livelihoods, usually justifying them as costs of providing a free service or as a prerogative for deciding who and how they do business.

However, if you achieve the monopoly status that Google has clearly achieved in numerous areas such as search traffic, browser sharing and online advertising, the rules will change somewhat and Google will catch up particularly slowly.

With a fine of 150 million euros ($ 167 million) from the French competition authorities, Google will hopefully be informed more quickly about its obligations.

The fine stems from a 4-year complaint from Gibmedia, a weather website publisher, who said Google wrongly blocked the purchase of ads.

Google claimed the company had “tricked people into paying for the service” and “exploited and abusive advertising.”

The French competition authority found that Google had acted improperly by blocking advertisers and had to clarify its rules with advertisers.

“Google has the power of life or death for certain companies that make a living from these ads,” said Isabelle de Silva, chair of the French competition authority, at a press conference to announce the decision. “We do not dispute the right of Google to impose rules. However, the rules must be clear and imposed on all advertisers equally.”

The agency urged Google to end the “brutal and unjustified” ban on search engine advertisers. Google should have a system that notifies advertisers when they risk locking their ad system.

Google, for its part, stood by its actions and said it would contest the decision.

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Stock

Tesla stock rises, But Why is that so?

Tesla stock rose more than $ 23, or 6.5%, on Monday. This is a new 52-week high for the pioneer of electric vehicles. The problem is that no one on Wall Street knows exactly why stocks are rising.

An automotive analyst told Barron that the Tesla change (ticker: TSLA) was “surprising” and found that U.S. tax credits for electric vehicles will decrease in 2020. A Wall Street dealer had no additional insights when asked about the change on Monday.

Deutsche Bank analyst Emmanuel Rosner noted in a research report released Monday that a German Tesla agency has approved a new Tesla facility in that country. Good news, but it’s not a stock moving event. Nobody expected Tesla to have problems building capacity in Germany. The company extends its manufacturing base beyond its roots in Fremont, California to Shanghai and Europe.

Of course, Tesla is a short-selling stock. Bearish investor borrows and sells stocks, betting on falling prices. Relatively high short sales can lead to higher volatility of the shares. There is always the potential for a short squeeze, even if investors hurry to cover short positions at once, leading to a temporary flood of buy orders.

Even if investors cannot agree on why, they can agree on the impact. The rally in the Tesla share was breathtaking. According to Dow Jones Market Data, the closing price on Monday would be the highest since August 7, 2018, when the stock closed at $ 379.57. In addition, the stock rose more than 110% from the 52 week closing price of $ 178.97 on June 3, 2019. It was a remarkable run.

The Tesla share has risen by around 14% since the beginning of the year and is therefore slightly worse than the comparable profits of the S&P 500 and the Dow Jones Industrial Average. But Tesla stock has risen almost 57% in the past three months.