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Google fined a record $5 billion by the EU for abusing the dominance of Android (GOOG)

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  • Google has been fined a record $5 billion by the European competition watchdog for abusing the dominance of its mobile operating system Android.
  • Google is accused of forcing smartphone makers like Samsung and Huawei to preinstall its own services, such as Google Search and Google Maps, on Android.
  • The timing couldn't be worse for Google given the growing global appetite to break up big tech — and the company may be forced to unbundle Android from its search business.
  • Google is appealing the decision.


Google has been fined a record €4.3 billion ($5 billion/£3.8 billion) by Europe's competition watchdog for abusing its dominant Android mobile operating system to cement the popularity of Google apps and services.

It's the biggest antitrust fine ever given by Europe's competition regulator against a single firm, and cements competition commissioner Margrethe Vestager's reputation as Silicon Valley's policewoman. Google said it would appeal the decision.

Vestager said on Wednesday: "Today, the commission... rules Google has engaged in illegal practices to cement its dominant market position in internet search. It must put an effective end to this conduct within 90 days or face penalty payments."

Tweet Embed:
//twitter.com/mims/statuses/1019537297925197824?ref_src=twsrc%5Etfw
Fine of €4,34 bn to @Google for 3 types of illegal restrictions on the use of Android. In this way it has cemented the dominance of its search engine. Denying rivals a chance to innovate and compete on the merits. It’s illegal under EU antitrust rules. @Google now has to stop it

The European Commission found Google had used Android, the most popular mobile software globally, to reinforce its own dominance in search.

The commission said Google forced Android phone makers to pre-install Google Chrome and Google Search on their devices in order to access Google's app store, Google Play. 

According to the EU, forcing manufacturers to pre-install apps like Search meant Google could protect its core search business from competition. Google's search business accounts for the majority of its revenue.

Vestager said Google also made payments to phone makers to ensure they exclusively pre-installed its search app on their devices. And finally, she said Google had stopped manufacturers selling phones running "forked" versions of Android.

Google said Android had created choice and not hindered it. The company said it would appeal the commission's decision.

Tweet Embed:
//twitter.com/mims/statuses/1019539840457723904?ref_src=twsrc%5Etfw
.@Android has created more choice for everyone, not less. #AndroidWorks pic.twitter.com/FAWpvnpj2G

This is the third major investigation into Google by Europe's competition watchdog, and it has lasted more than three years. The firm was hit with a €2.4 billion (£2.1 billion/$2.7 billion) fine last year for promoting its own shopping service in search. Google is appealing the fine. And there is a third investigation underway over whether Google's AdSense technology protects its dominant position in online advertising.

It's also the latest in a long line of penalties and probes into Silicon Valley firms by Margrethe Vestager, who has imposed the record fines against Google, a fine against Facebook over its WhatsApp acquisition, and an investigation into Apple over its purchase of music app Shazam.

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SEE ALSO: Google faces a second massive fine from the EU — this time over Android

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