Google takes a hit today as the European Commission hands down a ruling stating that the company is to pay 4.34 billion euros. That equates to $5 billion in fines, all related to anti-trust laws in the EU. The fines are in relation to the Android operating system. According to the Commission, the way that Android comes pre-installed with things like the Google Play store gives the company an unfair advantage in searches. As such, they have positioned their own search engine in such a way that meaningful competition can’t occur.
The European Commission’s Anti-Trust Fine
“Google has used Android as a vehicle to cement the dominance of its search engine,” said EU competition commissioner Margrethe Vestager. “These practices have denied rivals the chance to innovate and compete on the merits. They have denied European consumers the benefits of effective competition in the important mobile sphere. This is illegal under EU antitrust rules.”
As such, the aforementioned fines will be laid at Google’s doorstep, and the company must change its operating system to be compliant with EU rules. This could include no longer shipping devices with Google apps like YouTube, Google Maps and the Google Play Store preinstalled in Europe.
Google’s Response
In response, Google has appealed the decision. Google CEO Sundar Pichai has defended his company against the claims of monopoly. Pichai reminded the EU that Google faces competition in the smartphone field from Apple and their popular iPhone brand. Additionally, Pichai reiterated that users are allowed to install non-Google competitors’ apps on their phones.
Further, Pichai reminded the EU that Android has led to a diversification of the number of smartphones in the world. Since Google offers Android to any manufacturer free of charge, the number of different handsets has exploded. As such, Google argues, it’s only helped competition, not hindered it.
Following Google’s appeal, the EU will take a second look at the charges and fines. This fight’s hardly over, but it seems the EU has taken it upon itself to act as international trust-buster.
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