5 Companies That Had A Rough Week

The Week Ending June 30

Topping this week's roundup of those having a rough week is Google, which was hit with a huge $2.7 billion fine by the European Commission for alleged antitrust violations.

Also making the list this week were Lumenate, which suffered a significant setback in bankruptcy court; Kaspersky Lab, which is facing legislation in the U.S. Congress that could prevent it from selling software to the U.S. Department of Defense; Tintri, which delayed its IPO and reduced the expected price of its shares; and companies hit by this week's Petya ransomware attack.

Not everyone in the IT industry was having a rough go of it this week. For a rundown of companies that made smart decisions, executed savvy strategic moves – or just had good luck – check out this week's 5 Companies That Came To Win roundup.

Google Hit With $2.7 Billion Fine By European Commission For Alleged 'Illegal' Shopping Service Advantage

While Google was braced for an expected fine from the European Commission for alleged antitrust violations around its online shopping service, the whopping $2.7 billion fine handed down this week was a shocker.

The European Union antitrust regulator concluded after an investigation that Google systematically gave prominent placement to its own comparison shopping service, giving it an "illegal" advantage. The practice, according to the European Commission, constituted an "abuse of Google's dominant position in general internet search by stifling competition in comparison shopping markets."

The $2.7 billion fine is the largest ever imposed by the EC. Two weeks ago multiple media reports suggested the fine would exceed a $1.2 billion fine assessed against Intel in 2009 for alleged antitrust abuses.

Judge Sides With Creditors In Lumenate's Chapter 11 Bankruptcy Filing

Solution provider Lumenate is facing the possibility of dissolution after a U.S. bankruptcy judge sided with creditors in the case this week. Judge Stacy Jernigan wrote in a June 26 order that dismissal of the Chapter 11 case was "in the best interest of the debtor, its estate and creditors."

Lumenate owes Avnet Technology Solutions, the company's former distributor, and MidCap Financial $25.5 million and $2.1 million, respectively. They have opposed Lumenate's bid for Chapter 11 protection, arguing that they should be able to take possession of Lumenate's collateral to settle the outstanding debts.

Legislation Could Block Kaspersky Lab From Selling To The U.S. Department Of Defense

Kaspersky Lab could be blocked from selling its security software to some parts of the U.S. government, most notably the U.S. Department of Defense, under a bill approved by the Senate Armed Services Committee this week.

The proposed legislation could prohibit the Defense Department from using Kaspersky's software over concerns that it "might be vulnerable to Russian government influence," according to the bill.

Kaspersky has its global headquarters in Moscow and North American headquarters in Woburn, Mass. The Defense Department and the U.S. military would be prohibited from using the company's software under the bill. The bill must pass both houses of Congress and be signed by President Donald Trump to become law.

Tintri Delays IPO, Cuts Planned Share Price

Storage technology developer Tintri, which had been expected to go public this week, is delaying its initial public offering and cutting the expected share price.

The move comes as technology stocks remain mired in a slump – and underwent a selloff Thursday. Other storage technology companies that have gone public in recent years are seeing their shares trade close to their IPO price.

Tintri, a manufacturer of all-flash and hybrid-flash storage systems, had been widely expected to go public Thursday. But the company instead filed a new S-1 document saying it planned to offer 8.5 million shares of common stock with a price between $7.00 and $8.00 per share, raising $59.5 million to $68 million.

Earlier filings indicated the company would issue 8.7 million shares at between $10.50 and $12.50 per share, raising $91.4 million to $108.8 million.

IT Executives Wrestle With Latest Ransomware Attack

IT managers at businesses around the world scrambled this week to deal with a major ransomware attack that hit a number of companies in the U.S. including pharmaceutical giant Merck, law firm DLA Piper and snack maker Mondelez.

The Petya ransomware attack, coming just six weeks after the Wanna Cry ransomware attack, hit businesses throughout Ukraine, Russia, a number of European countries including Denmark and Germany, and Australia.

The attacks are evidence of how unprepared many businesses and organizations are for such large-scale attacks, incidents that are likely to become more frequent.