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EU Smacks Google With Record $5B Antitrust Fine

July 17, 2018 by upbeacon.net Leave a Comment

Google has been fined a record amount of 4.3 billion euros, which is almost $5.04 billion by the European Union’s Competition Commission, in a ruling on the Android antitrust case.

Vestager stated in the press conference that “Google has used Android as a vehicle to cement its dominance as a search engine”, something that has denied European consumers choice and businesses the ability to innovate.

The EU said Google ensures that Google Search and Chrome are pre-installed on “practically all Android devices” sold in Europe.

The European Commission gave the internet search firm 90 days to stop the practice or face a penalty of up to five per cent of the average daily turnover of the firm’s parent company, Alphabet.

The fine is the largest ever issued by the European Commission in an antitrust case and will surpasses the €2.42bn penalty issued to the Silicon Valley firm previous year.

A Google spokesman said that the company would comment on the decision later Wednesday.

The EU went after Android because of said contracts which pretty much prevented vendors from offering alternatives to non-Google apps on Android devices. Last year, she announced a €2.4 billion ($2.79 billion) fine after the company was found to be abusing its position as the leading search engine.

More significant than a blockbuster fine could be an accompanying order freeing up mobile phone manufacturers to choose non-Google apps to install on Android smartphones.

Margrethe Vestager, the European commissioner in charge of competition policy, said: “Today, mobile internet makes up more than half of global internet traffic”.

Most of all, the European Union is anxious that this harms you, the consumer, by restricting your choice and preventing innovation that could lead to better alternative mobile experiences for you in the future.

“The Commission’s fine of €4,342,865,000 takes account of the duration and gravity of the infringement”, the EU Commission wrote. Google could be forced to open up Android, which would mean not forcing manufacturers to pre-install Google services including Chrome, YouTube and Google Maps.

Google’s web search, advertising, and mobile operating system products have an enormous hold of market share individually, which has won the company a lot of criticism.

Google Search and Chrome are as a result pre-installed on the “significant majority” of devices sold in the European Union, the commission says.

Today’s ruling, which was originally expected earlier this month but was postponed to avoid a clash with President Trump’s visit to Europe, will bring an end to the EC’s investigation into Google’s Android OS.

Vestager first outlined competition complaints with Android, the most widely adopted mobile operating system in the world, roughly two years ago.

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