EU - Google Slapped With $5bn Fine Over Android Dominant Position (Video)

Ms Margrete Vestager, whom many in the EU capital Brussels are tipping to become the next head of the European Commission when Mr Jean-Claude Juncker will finish his term, slapped US tech giant Google with a $5 billion fine for using it’s mobile operating system Android in such a manner that it could illegally "cement its dominant position" in search.

<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Fine of €4,34 bn to <a href="https://twitter.com/Google?ref_src=twsrc%5Etfw">@Google</a> 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. <a href="https://twitter.com/Google?ref_src=twsrc%5Etfw">@Google</a> now has to stop it</p>&mdash; Margrethe Vestager (@vestager) <a href="https://twitter.com/vestager/status/1019537297925197824?ref_src=twsrc%5Etfw">July 18, 2018</a></blockquote>

<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Google’s parent company Alphabet was informed before Ms Vestager’s press conference that the company now has 90 days to change its business practices or be faced with further penalties of 5% of its average global daily turnover if it does not comply with the new measures. Alphabet plans to appeal the ruling.

Given its cash reserves of some $103bn at the end of March, paying the fine would not be a problem though.

Related coverage: https://thegoldwater.com/news/27948-Apple-Blocks-Facebook-Data-Trackers

Competition Commissioner Ms Margrethe Vestager said consumers needed choice.

<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Google fined record €4.34bn by European commission - company has used Android to cement its dominance as a search engine and this is illegal under EU anti-trust rules, says <a href="https://twitter.com/vestager?ref_src=twsrc%5Etfw">@vestager</a><br> <a href="https://t.co/REX4ixaGXF">https://t.co/REX4ixaGXF</a></p>&mdash; Jennifer Rankin (@JenniferMerode) <a href="https://twitter.com/JenniferMerode/status/1019539559586189313?ref_src=twsrc%5Etfw">July 18, 2018</a></blockquote>

<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

According to investigators within her ‘Directory General For Competition’, Android acted illegally on three fronts:

Firstly, it required any Android smartphone or tablet manufacturers to pre-install the Google Search app and use its web browser Chrome

<iframe width="854" height="480" src="https://www.youtube.com/embed/0wLeOISfdwo" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen></iframe>

Secondly, Google worked only with those manufacturers and mobile network operators that agreed to this condition.

Thirdly, it prevented those same manufacturers from selling smartphone operating on alternative operating systems and refused them permission to pre-install those apps.

Related coverage: https://thegoldwater.com/news/29096-Australia-Apple-Fined-Millions-For-Refusing-iPhone-Repairs

According to Ms Vestager, once you have Google automatically installed on your Android smartphone, this leaves out any temptation of looking for another search engine. She stated: "Once you have it, it is working, very few are curious enough to look for another search app or browser."

“The vast majority of users simply take what comes with their device and don’t download competing apps.”

Google's CEO Mr Sundar Pichai in response claimed that: "rapid innovation, wide choice, and falling prices are classic hallmarks of robust competition and Android has enabled all of them."

"Today's decision rejects the business model that supports Android, which has created more choice for everyone, not less."

The decision is sure to raise tension with the US again before the European commission president, Mr Jean-Claude Juncker, visits the White House next week.

Source:

https://www.npr.org/2018/07/18/630030673/eu-hits-google-with-5-billion-fine-for-pushing-apps-on-android-users?utm_source=npr_newsletter&utm_medium=email&utm_content=20180718&utm_campaign=breakingnews&utm_term=nprnews