Google hit with record $5 billion fine over Android Antitrust Violations by EU

The case was in the court and many analysts were expecting that Google could be fined multibillion over the antitrust violations. The EU commission has announced its decision today charging Google with 4.3 billion Euros $5 billion.

EU commission has announced the decision which was pending on the case that Google is unfairly dominating the Android market by forcing Original Equipment Manufacturers (OEMs) to install certain Google apps including Chrome on their devices if they want to get access to the Play Store.

The European Competition regulator EU Commission ruled that Google has messed up the fair competition market with this practice, Chrome search and other default Google apps have secured the 80 percent of market share almost creating a monopoly for them, the commission said.

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The commission while charging Google with $5,000,000,000 said in a written statement, “According to the guidelines of Commission’s 2006 (Guidelines on Fines), the fine is calculated on the basis of Google’s revenue from Search advertising services as well as Android devices in EEA. The Commission requires Google to stop its illegal practice within 90 days of the decision.”

Google has violated in several ways, it forced the OEMs to preinstall the Chrome search app and make them default in Android devices, it also paid manufacturers and mobile operators to exclusively install the Google search app, it also restricted manufacturers from selling any mobile devices Android forks that are not approved by Google, the EU Commission said.

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EU imposed fine of $2.8 billion on Google last year for unfairly promoting its own shopping results in search. However, EU had the right to fine Google up to 10 percent of its annual revenues which was $110 billion in 2017.

EU has ordered Google to refrain from the practice covering all three ways as mentioned above in future in a press release; also EU wants Google not to engage in measures that have similar or equivalent object effects.

However, Google can still use its apps, the EU cannot restrict Google from engaging in a practice that is reasonable, fair and objective allowing Android devices functioning correctly, also allowing more freedom to Android device manufacturers.

Google is likely to appeal against the decision, as EU’s high court has recently ruled that $1.4 billion fine on Intel shall be re-examined. This means Intel’s fine could be reduced if not completely taken off. Google will do the same to at least reduce the gigantic fine.