Google has been fined a record $5bn over Android antitrust violation by the European Commission. The European Commission said the firm had used the mobile operating system to illegally cement its dominant position in general internet search.
The firm’s parent Alphabet has been given 90 days to change its business practices or face further penalties of up to 5% of its average daily turnover. However, it has said it plans to appeal.
The European Union Competition Commissioner Margrethe Vestager said consumers needed choice. And she suggested the ruling could lead manufacturers to sell smart devices using different versions of the Android operating system to Google’s, such as Amazon’s Fire OS. “This will change the marketplace,” she said.
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
Ms Vestager acknowledged that Google’s version of Android does not prevent device owners downloading alternative web browsers or using other search engines.
Alphabet can easily afford the fine – its cash reserves totalled nearly $103bn at the end of March.
Google’s chief executive Sundar Pichai was pre-briefed about the ruling on Tuesday and has blogged in response.
“Rapid innovation, wide choice, and falling prices are classic hallmarks of robust competition and Android has enabled all of them,” he wrote.
“Today’s decision rejects the business model that supports Android, which has created more choice for everyone, not less. We intend to appeal.”
Ms Vestager previously fined Google $2.8bn over a separate probe into its shopping comparison service – a ruling the tech firm is in the process of appealing against.
In addition, her team has a third investigation underway into Google’s advert-placing business AdSense.
