European Union hits Google with $5bn fine for breaking competition rules

19 July, 2018, 00:40 | Author: Darnell Patrick
  • EU hits Google with $5bn fine for breaking competition rules

The European Commission fine will exceed last year's then-record €2.4 billion penalty following an investigation into Google's shopping-search service.

Google has been fined a record-breaking €4.34 billion ($5.04 billion) over antitrust violations regarding its Android operating system.

Google required phone manufacturers to pre-install Google Search and its browser app, Chrome, in order to access Google's app store, Google Play. More significantly, the European Union has also ordered Google to allow phone manufacturers and telecom operators to allow non-Google apps on Android devices. The company said it would appeal the commission's decision.

Android is the most widely used mobile OS in the world, installed on roughly 76% of all smartphones, including those manufactured by Samsung, Sony and Huawei.

The Commission has been investigating Google's use of Android since 2015 after European and American rivals complained.

It is the largest fine imposed by the European Union regulator against a single firm, after a three-year investigation into Google following a complaint by Fairsearch in 2015.

Google, which purchased Android in 2005, has denied any wrongdoing and plans to appeal the EU's ruling.

According to the EC, those measures prevent other companies from having a fair chance to compete with Google's search engine and prevented other variations of the Android operating system to compete. Failing to comply with the decision would make Google liable for a fine of 5 percent of the average daily worldwide turnover of Alphabet, Google's parent company. "A vibrant ecosystem, rapid innovation and lower prices are the classic hallmarks of robust competition".


"So far, the Android business model has meant that we haven't had to charge phone makers for our technology, or depend on a tightly-controlled distribution model", said Pichai. The organization welcomed the EU's fine today in a press release.

"They have denied European consumers the benefits of effective competition in the important mobile sphere", she added.

Google will probably challenge the fine, just as with did with the previous one.

It also argues that it allows other apps to be pre-installed alongside Google apps, and that agreements not to support altered versions of Android enable it to provide a baseline experience on tens of thousands of different devices. "This harmed competition by significantly reducing their incentives to pre-install competing search apps".

Google will have 90 days change its illegal practices, but it seems unlikely that the tech giant will comply so soon, so don't hold your breath.

Regulators rejected arguments that Apple Inc. competes with Android, saying Apple's phone software can't be licensed by handset makers and that Apple phones are often priced outside many Android users' purchasing power.

Vestager also accused Google of making illegal payments to manufacturers to ensure that its apps are pre-loaded.

Recommended:



Popular

Putin Summit Should Proceed: Pompeo
But he has also seemed to suggest that there is not much he can do to push back against the Russian leader's denials. The United States has no extradition treaty with Moscow and can not compel Russian Federation to hand over citizens.

Taylor Swift 'Third Wheels' as Fan Proposes in Front of Her!
She can be seen holding a picture of herself as a little girl standing in front of the same shed with the caption "Take me home ". Fortunately, she made it through the show like the pro she is and her Swifties loved her even more for it!

Kate Upton & Justin Verlander Expecting First Child
The photo, with Upton in red trousers , white tank top and red jacket, was showing just a hint of a baby bump. It will be the first child for both her and Verlander, an All-Star pitcher for the Houston Astros.

Pressure grows on Trump to confront Putin after Mueller indictments
The US President has repeatedly shown that flattery, praise and a welcoming atmosphere are the fastest ways to his heart. The White House press secretary Sarah Huckabee Sanders told NBC News on Friday afternoon that the summit is "still on".

Eden Hazard names himself as World Cup Golden Ball victor
Beating Belgium on Saturday would give England their best World Cup finish since then, surpassing fourth place in Italy in 1990. Kevin De Bruyne ( Belgium): How England desperately need a player like the Manchester City magician.

Mike Pence: I Still Want to See Roe v. Wade Overturned
Justice Kennedy, who was often considered the swing vote, occupies a far more liberal position in the system than Kavanaugh does. Working from the inside at the Supreme Court, Fitzpatrick said justices are reluctant to overturn past decisions.

North Atlantic Treaty Organisation summit: Has Trump shifted United States alliance in Europe?
And I think you can have no doubt, Mr President, that this is an investment in common American and European defence and security. He said that money helped boost USA security, as the United States regards Russian Federation and China as threats.

Wimbledon 2018: Roger Federer's Cricket Skills Impress Sachin Tendulkar
Elsewhere, Milos Raonic beat Mackenzie McDonald in four sets to reach the quarter-finals for the third year in a row. Tomorrow, Federer will have the chance to break his own Wimbledon record of 34, recorded between...

Feds say they will release, reunite 50 immigrant children
The administration says federal law requires it to ensure that children are safe - and that, it contended, calls for more time . By July 6, officials must make sure every separated parent has a way to contact their child.

Trump Mocks #MeToo, Sucks Up To Putin, And Other Greatest Rally Hits
Bush's slogan during his rally. " Jon Tester showed his true colors with his shameful, dishonest attacks on a great man". Jon Tester's Republican challenger, state Auditor Matt Rosendale. "The war was lost" on trade "many years ago", Mr.