Google fined record US$5 billion by EU, told to alter Android model
The EU’s decision would bring the running total of Google fines to about €6.7 billion after last year’s penalty over the US firm’s shopping-search services
Google was fined €4.3 billion (US$5 billion) by the European Union and ordered to change the way it puts search and web browser apps on Android mobile devices, setting a record for antitrust penalties.
The penalty – the same amount the Netherlands contributes to the EU budget every year – is far higher than any other dished out by the United States, Chinese or other antitrust authorities.
More significantly, Google was given 90 days to stop what the EU said were “illegal practices” on contracts with handset manufacturers that push Google services in front of users.
“Google has used Android as a vehicle to cement the dominance of its search engine,” EU Competition Commissioner Margrethe Vestager said in an emailed statement on Wednesday. “These practices have denied rivals the chance to innovate and compete on the merits.”
Google has built a massive business of banner and videos advertisements, thanks largely to its central role on Android devices. The company will account for a third of all global mobile ads in 2018, according to research firm eMarketer, giving the company around US$40 billion in sales outside the US. Google risks losing that traction if it is forced to surrender its real estate on millions of Android smartphones.