Posted on 07/18/2018 7:06:12 AM PDT by Red Badger
The European Union hit Google with a record antitrust fine for abusing the dominance of its Android mobile operating system. It ordered Google to put an end to illegal conduct within 90 days, or else face additional charges of up to 5 percent of Alphabet's average daily worldwide turnover. The ruling comes little over a year after the EU fined the company $2.7 billion for favoring its shopping service over competitors.
European Union regulators have slapped Alphabet-owned Google with a record 4.34 billion euro ($5 billion) antitrust fine for abusing the dominance of its Android mobile operating system, which is by far the most popular smartphone OS in the world.
Google said in a statement that it would appeal the ruling, arguing against the EU's view that its software is restrictive of fair competition.
European officials say Google's parent company has unfairly favored its own services by forcing smartphone makers to pre-install Google apps Chrome and Search in a bundle with its app store, Play. It also said Google violated competition rules by paying phone makers to exclusively pre-install Google search on their devices and preventing them from selling phones that run other modified, or "forked," versions of Android.
The European Commission, the EU's executive body, ordered the company to put an end to illegal conduct within 90 days, or else face additional charges of up to 5 percent of Alphabet's average daily worldwide revenue. The EU fine is the largest ever issued to Google, which was served with a $2.7 billion penalty for favoring its shopping service over competitors last year.
In its decision, the EU pointed to Apple, Google's fiercest competitor in the smartphone market, saying that the smartphone maker did "not sufficiently constrain" Google. Apple also pre-installs a number of apps on its iPhone models.
In a blog post, CEO Sundar Pichai writes that the commission ignored "the fact that Android phones compete with iOS phones," adding that the decision did not consider the choice Android offers to phone makers, mobile network operators, app developers and consumers.
He also defends the company's app bundling, arguing that it's easy for users to install alternatives if they don't want to use Google's pre-installed options. The EU decision, he says, could "upset the careful balance" Google has with Android. The company lets phone makers use the open-source software for free, but generates advertising revenue when consumers use its apps.
Google's advertising business is growing much faster on mobile than desktop, and by bundling its apps together, Google has more real estate to sells its ads as well as more data about users for targeting those ads.
Tweet
Shares of the search giant slipped 0.4 percent in premarket trade on news of the fine, which could have been as high as $11 billion, or 10 percent of Alphabet's annual global revenue, according to EU regulation guidelines. The EU first opened its investigation into Android in 2015, two years after receiving a complaint from FairSearch, which, at the time, included the likes of Microsoft and Nokia.
In a news conference on Wednesday, Margrethe Vestager, the EU's competition commissioner, reiterated the argument presented in the decision.
“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.
Vestager tweet
The commission is still investigating a third antitrust case against Google's search advertising service, AdSense.
The EU must have another Budget Shortfall
Penalize those who are to good at business.
Still trying to protect Nokia and EU non-performing minor companies.
They have done this to MS, Intel and Apple....
All delivering superior product that they can’t compete with.
Meabwhile French and German genius have not produced a competitive product favored by enough of their citizens to be meaningful.
China, poor old backward China has produced several such competative applications that have usage in the hundreds of millions. Europe suffers from stagnation and invasion and lacks the soul to exist in the modern world.
That’s why our ancestors all left Europe over the last 500 years.................
Why would such a strong Ally fine there close allies....They did the same thing to Microsoft and it was bogus then too
Need $$$ to support the invading muzzie immigrant freeloaders.
5 Billion, because Google can “afford” it. That’s how leftist philosophy works. Stick your hands in other people’s backpockets and grab as much as you think you can get away with.
Antitrust fine for abusing the dominance Facebook should be next.
I’d feel bad for Google, but it’s a leftist company being hoisted on its own petard.
Sutton’s Law has never been repealed. They were gonna get to Google sooner or later.
Yes, a leftist company being robbed by a leftist EU. Justice in a way.....
$5 billion?
tell them to go F themselves.
They don’t need a reason. If you have the money, they want it
Chump change for Google.
Didn’t the F-ing EU just fine Google a little over 2 Billion last year or the year before?
I don’t particularly like Google, but it’s American and I despise the EU more.
The USA needs to jack up the tariff on European goods with the stipulation that half of the additional collected money goes to Google to offset their losses from the $5B fine.
If I owned a software or web company I think I would just design my stuff to detect European IPs and then just refuse to provide service to those people. You know, like youtube will tell you “This Video Is Not Available in Your Region”.
It just doesn’t seem worth wading into that spiraling legal quagmire to make a few bucks off them anymore.
Exactly, it is like watching Hitler and Stalin fight.
Did they find a method to prevent Rooting; as Apple does to prevent jailbreaking?
Apple has many rules about their OS, they must next on the hit list.
I must have missed it? When did they hit up SAP?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.