EU Commission: Google expects the next billion dollar penalty

According to a report, the European Commission wants to punish Google with a record penalty. It accuses the group of abusing its market power in Android apps.

EU Commission: Google expects the next billion dollar penalty

According to media reports, EU Commission wants to cover Google with next record competition penalty this Wednesday. This time it's about Smartphonebetriebssystem Android. According to information from Financial Times, fine will exceed good 2.4 billion euros from shopping search process last year. This was highest cartel penalty ever made in Brussels for a single company.

In addition to billions penalty, Commission also wanted to enforce changes to Google's business model on Android, website reported on night of Wednesday, citing informed people.

The Commission recorded Android procedure in April 2015 and accused group of abusing its monopoly on market one year later. Google and parent company Alphabet reject accusations. The operating system Android is developed on Google; Device manufacturers can use it for free and also change it. However, if you bring Google apps like Gmail or maps to your devices, re are limitations.

Among or things, Commission is disturbed by fact that manufacturers of Android smartphones who want to embed Google services always have to bring a complete package of eleven apps of internet company to devices. For example, Google's browser chrome and search would be on devices, even if a manufacturer wanted to install only app platform Play store, for example. Google is countering a need for a set of apps, because users would not be able to use Google services sensibly.

In addition, Brussels authority criticizes so-called Antifragmentierungsvereinbarung, according to which providers of devices with Google services can not sell smartphones with modified Android versions at same time.

All in all, Commission sees Google's strategy of inunfairly intending market position of its offers on mobile devices against or providers. Android has a worldwide market share of over 80 percent in Smartphoneabsatz. The only relevant or mobile operating system is iOS platform from Apple's iphones. Competing systems like Microsoft's Windows Phone or BlackBerry software had lost competition.

With spread of smartphones, use of online services such as Internet search or YouTube video platform on mobile devices is becoming an increasingly important revenue source for Google.

In parallel, EU is even conducting a third cartel case against group: this is about AdSense for search service, where or websites can embed Google search masks. Among or things, group restricts ability of se vendors to also display advertising from Google's rivals, commission found.

Date Of Update: 19 July 2018, 12:02

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