EU slaps Google with €4.34b fine over illegal Android strategy

BRUSSELS – Google has been hit with a record €4.34 billion ($5 billion) fine by the European Union for manipulating its market dominance in mobile phone operating systems.

The EU has slapped an antitrust fine on US tech giant for illegally using its Android operating system to strengthen the dominance of its search engine.

The US tech firm forced smartphone manufacturers to pre-install Google’s search and browser applications in their devices using its  Android operating system; otherwise, they would not be allowed to use its Google Play online store and streaming service.

https://twitter.com/vestager/status/1019537297925197824

"Google has used Android as a vehicle to cement the dominance of its search engine," EU Competition Commissioner Margrethe Vestager said in a statement.

"This is illegal under EU antitrust rules," the statement added.

Moreover, the EU during verdict gave Google 90 days to end illegal practices surrounding its Android operating system or face further penalties.

"Google must now bring the conduct effectively to an end within 90 days or face penalty payments of up to 5% of the average daily worldwide turnover of Alphabet, Google's parent company," the European Commission said in a statement.

Google to challenge EU fine

Google's spokesman Al Verney said they will appeal against the EU decision.

"Android has created more choice for everyone, not less and we will appeal to the (European) Commission's decision."

"A vibrant ecosystem, rapid innovation, and lower prices are classic hallmarks of robust competition. We will appeal the Commission’s decision," Google statement further added.

https://twitter.com/googleeurope/status/1019539840457723904

The verdict ends a 39-month investigation by the European commission’s competition authorities into Google’s Android operating system.