European Union expected to fine Google $5 billion in record-breaking fine

European Union expected to fine Google $5 billion in record-breaking fine

But Brussels has had USA tech giants in its sights for a decade in a half, since it imposed a huge 497 million euro fine on Microsoft in 2004 for anti-competitive behaviour and ruled it must make changes to its Windows system.

The EU's decision would bring the running total of Google fines to 6.7 billion after last year's penalty over shopping-search services.

[T] he bloc's antitrust regulator found Wednesday that Google had abused the dominance of its Android operating system, which runs more than 80 percent of the world's smartphones, to promote and entrench its own mobile apps and services, particularly the company's search engine. The issue, the European Union says, is that Google requires Android device makers to pre-install the Google search and browser apps on "practically all" devices sold in Europe; in the past, the company used financial incentives to further encourage pre-installation.

"Google has engaged in illegal practices to cement its dominant market position in internet search", EU Competition Commissioner Margrethe Vestager said as she announced the huge fine. The EC has another antitrust case against Google opened over alleged abuse of the company's AdSense network. Google will account for a third of all global mobile ads in 2018, according to research firm eMarketer, giving the company around $40 billion in sales outside the U.S. Google risks losing that traction if it is forced to surrender its real estate on millions of Android phones.

The Commission's decision was delayed by a week by US President Donald Trump's visit to a North Atlantic Treaty Organisation summit in Brussels last week.

The record-setting fine almost doubles the €2.4 billion ($2.8 billion) penalty levied against Google previous year for pushing its own shopping results to the top of search pages. The EU Commission also dismissed Google's argument that Apple was a competitor to Android devices, saying the iPhone maker does not sufficiently constrain Google because of its higher prices and switching costs for users.

More news: French fans give hero welcome to "Les Bleus" World Cup champions
More news: Woman bites off nose of 28-year-old victim during attack
More news: Syria rescue group says 10 killed in airstrike on shelter

"The Commission decision concerns three specific types of contractual restrictions that Google has imposed on device manufacturers and mobile network operators".

EU competition chief Margrethe Vestager will hold a news conference later today, the European Commission said. Android phone users can easily install other applications, even if they're not pre-installed by manufacturers, he noted. These laws are in place to ensure that fair competition is maintained among business corporations for the benefit of consumers. "This means that we earn revenue only if our apps are installed, and if people choose to use our apps instead of the rival apps", said Pichai.

Google and the European Union are certainly not on friendly terms right now, and haven't been for quite some time.

"Phone makers don't have to include our services; and they're also free to pre-install competing apps alongside ours".

Functionally, preventing an altered version - or "fork" - of Android also prevents Samsung, a hugely popular maker of Android devices through its Galaxy line, from breaking off and taking much of the Android ecosystem with it. Currently, an OEM that wants to partner with Google and sell certified devices with Google services can not also go out and sell devices with incompatible Android forks - something built from open source without support for standard Android software and features.

Pichai intends to appeal the fines.

Related Articles

  • Trump sets expectations low for Helsinki summit with Putin

    Trump sets expectations low for Helsinki summit with Putin

    Trump raised the meddling issue during his first meeting with Putin on the sidelines of the G20 summit in Hamburg past year . Paul said that people just "hated" President Trump and that's why they are being hard on him over the summit.
    Officer fires through window at murder suspects

    Officer fires through window at murder suspects

    The police say the officer spotted a auto matching the description of a vehicle connected to a murder earlier in the day. One of the cops in pursuit, driving a Ford Explorer , can be heard saying "shots fired" while requesting aerial backup.
    Two protesters killed in clashes with Iraqi security forces - police official

    Two protesters killed in clashes with Iraqi security forces - police official

    Protests continued Sunday morning in Najaf city, where an AFP correspondent said security forces dispersed a large demonstration. Two more demonstrators died from gunshot wounds following protests overnight Friday, although it was not clear who killed them.
  • Alabama college student's story of determination goes viral

    Alabama college student's story of determination goes viral

    Duffey told Lamey about Carr's trek and asked if he could hang out at the home until the rest of the Bellhops crew arrived. Inspired by Carr's story, Lamey started a GoFundMe campaign to help him out and set the campaign's goal at $2,000.
    10 newly found moons of Jupiter include a 'wrong-way driver'

    10 newly found moons of Jupiter include a 'wrong-way driver'

    The name Valetudo has been proposed for it, after the Roman god Jupiter's great-granddaughter, the goddess of health and hygiene. The " oddball " moon, known as Valetudo, can be seen in green in a prograde orbit that crosses over the retrograde orbits .
    British Open Predictions: Five Golfers Who Can Win Claret Jug

    British Open Predictions: Five Golfers Who Can Win Claret Jug

    Woods will pair off in his first Open for three years with Russell Knox and Hideki Matsuyama at 3.21pm. Johnson figures he'll hit driver on half of the holes.
  • Manchester United squad hold first training session in Los Angeles

    Manchester United squad hold first training session in Los Angeles

    Jose Mourinho has returned to the Lowry Hotel after finishing his stint as a pundit on Russian television during the World Cup . The Italians would surely demand big money for the World Cup star, as would Rebic's current club, Eintracht Frankfurt.
    Mandalay Bay Owners Sue 1,000 Victims of Las Vegas Mass Shooting

    Mandalay Bay Owners Sue 1,000 Victims of Las Vegas Mass Shooting

    The perpetrator, firing from the window of the Mandalay Bay Resort and Casino, murdered 58 people and shot more than 400 others. Since the shooting, more than 2,500 people have sued or threatened to sue MGM and its properties, according to the lawsuits.
    What is World Emoji Day? When is it?

    What is World Emoji Day? When is it?

    The new emojis will better represent people with red hair, gray hair and curly hair as well as bald people, Apple said. World Emoji Day was founded by Jeremy Burge, the creator of Emojipedia, which is an unofficial Wikipedia for emojis.
  • Houston, Phoenix among future Final Four sites

    Houston, Phoenix among future Final Four sites

    San Antonio (2025) and Indianapolis (2026) also earned NCAA Tournament Final Four events. The Final Four will not be headed back to Detroit anytime soon.
    Houston Police Arrest Possible Serial Killer

    Houston Police Arrest Possible Serial Killer

    Authorities say Rodriguez should be considered extremely risky and possibly armed and should not be engaged if you encounter him. On Saturday night, a young employee was shot to death inside the Mattress Firm at 7592 FM 1960, not far from Willowbrook Mall.
    Fox's Sean Hannity praises Trump as

    Fox's Sean Hannity praises Trump as "very strong" at Putin presser

    As for USA troops in Syria, says Trump, they will be coming out after ISIS is crushed, and we are 98 percent there. Dan Coats , Trump's director of national intelligence, promptly made clear he did not share the president's view.