Wednesday July 18, 2018

Google Vows to Appeal $5 Billion Fine from EU Over Bundled Android Services

Google has been fined $5 billion by the European Union (EU) for anti-competitive practices. First Google required Android phone manufacturers to bundle Google search and other Google web services with every device as the default in exchange for access to the Google Play store. Secondly, Google paid phone manufacturers to make sure that only the Google Search app was preinstalled on such devices. Lastly, Google has obstructed the development of competing mobile operating systems that could have provided a platform for rival search engines to gain traffic. Google has 90 days to amend the contracts with phone manufacturers that require Google services to be set as the default on devices sold to consumers or face additional daily fines.

"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. "These practices have denied rivals the chance to innovate and compete on the merits."

"Android has created more choice for everyone, not less," Google spokesman Al Verney said in an emailed statement. "A vibrant ecosystem, rapid innovation and lower prices are classic hallmarks of robust competition."