EU, the European Union regulators have fined Google for a record $5 (€4.34bn; £3.9bn) Billion for 3 types of Antitrust Violations including illegal restrictions on the use of Android and unfair dominance in search. According to CNBC report, Google will have to end the illegal conduct within 90 days, or the company will face additional charges of up to 5 percent of Alphabet’s average daily worldwide turnover.
This is the biggest fine ever imposed by EU for an antitrust penalty. To recall, last year’s 2.3billion Euro fine was also against Google by EU.
Now, what would be the Google’s move on this? well, Google has now made it clear that it would appeal the EU’s decision.
“Android has created more choice for everyone, not less,” a spokesperson for the company said in statement. “A vibrant ecosystem, rapid innovation and lower prices are classic hallmarks of robust competition.”
Here is what Margrethe Vestager, the EU’s competition commissioner said on Wednesday at a press conference.
“Our decision stops Google from controlling which search and browser apps manufacturers can pre-install on Android devices or which Android operating system they can adopt,” she said.
Fine of €4,34 bn to @Google for 3 types of illegal restrictions on the use of Android. In this way it has cemented the dominance of its search engine. Denying rivals a chance to innovate and compete on the merits. It’s illegal under EU antitrust rules. @Google now has to stop it
— Margrethe Vestager (@vestager) July 18, 2018
What are the 3 Antitrust Violations by Google?
Ms. Vestager alleges that there are three ways that Google has acted illegally:
- it required Android handset and tablet manufacturers to pre-install the Google Search app and its own web browser Chrome as a condition for allowing them to offer access to its Play app store
- it made payments to large manufacturers and mobile network operators that agreed to exclusively pre-install the Google Search app on their devices
- it prevented manufacturers from selling any smart devices powered by alternative “forked” versions of Android by threatening to refuse them permission to pre-install its apps (as reported by bbc)