The European Commission (EU) has fined Alphabet Inc.’s Google with a record-breaking 4.34 billion euros which are approximately $5 billion on Wednesday! According to EU, it breached EU competition rules by imposing illegal restrictions on Android smartphone makers. EU ordered it to stop using its popular Android mobile OS to block rivals.
Google faces a record $5 billion fine for android case
This is the second time Google is fined by EU. The penalty is nearly double this year. The previous record was 2.4 billion euros. It has blocked smartphone makers from creating devices that run forked versions of Android. It also made payments to large manufacturers and mobile network operators to exclusively bundle the Google search app.
The EU ordered tech-giant Google to stop making smartphone manufacturers pre-install Chrome and search app if they want to pre-install Google’s Play store. EU also ordered Google to end restrictions of selling devices that run unofficial Android version. Android has been considered an open-source software. And Google has been adding many components into its Play Services software. The European Commission now wants Google to end its “illegal restrictions” within 90 days of the decision.
The decision is more about preventing it from bundling its services to Android smartphones. Phone manufacturers will be free to bundle Chrome and Google search apps whenever they want. They will be free to offer gadgets with forked versions of Android. These two apps targeted, are undoubtedly very popular. Even if these two apps are not pre-installed, users are most likely to install them from App store!
Appeal EU Decision
Google said that the allegation it inhibits competing apps is false because phone manufacturers install many rival apps on Android gadgets and consumers can download others. Google’s chief executive Sundar Pichai, wrote in a blog post that Android has more choice for everyone! The EU’s decision may influence the free business model of Android in the future.
In 2013, FairSearch originally filed a complaint against Google and other competitors like Microsoft, Oracle. Facebook, Apple, Microsoft, and Intel have all faced an anti-competition penalty from the European Commission. In fact, Microsoft was fined twice by the EU. Stay tuned for more such updates.
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