Trump slams European Union over US$5 billion fine on Google

Android may not remain free after EU fine warns Google CEO Pichai
Sundar Pichai
Author

20 July, 2018

The European Commission (EC) announced the record-breaking fine on Wednesday after a three-year investigation concluded that Google was in breach of competition law by forcing OEMs to pre-install its search and browser apps in order to licence access to the Google Play Store.

"Google has engaged in illegal practices to cement its dominant market position in internet search".

The EU is also targeting Google's payments to telecoms operators and manufacturers who exclusively install Google search on devices and contracts that prevent handset makers selling phones using other versions of Android. Google has already stopped paying OEMs and carriers in order to have Google search be the exclusive search offering on devices after the European Union started to dig into the issue back in 2014, so that's one thing off of Google's plate already.

A Google spokesperson told Digital Trends that what's resulted has been "a vibrant ecosystem, rapid innovation, and lower prices" that don't add up to an antitrust scenario - rather, they're "classic hallmarks of robust competition". They also have to make Google Search the phone's default search engine.

Google in its response said it will challenge the ruling at the European Union courts.

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EU Competition Commissioner Margrethe Vestager yesterday fined Google €4.3bn after finding it had used its Android mobile operating system to squeeze out rivals.

Having its apps pre-installed is a huge revenue driver for Google. A team of 100 engineers have been working in Fuchsia OS and they expect to achieve this goal in 5 years.

What the memo hints at, basically, is that Google might have to start charging companies for Android licences, should the European Commision's (EC) demands are granted. In the post, Google took a firm stand for itself and said that Android has helped 1,300 different smartphone manufacturers to develop Android-based mobiles.

The EU ordered Apple in 2016 to pay Ireland 13 billion euros in back taxes that the maker of iPhones and iPads had avoided by a tax deal with Dublin. "They truly have taken advantage of the United States, but not for long!", he wrote on the social network.


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