Google has been fined 4.125 billion Euros due to using some illegal tactics in Europe in order to maintain its dominent position in the market, the details of the case are as follows; The European Court of Justice (ECJ) follows the Commission’s decision to impose a heavy fine on Google for abusing Android’s dominant position. The company has to pay a fine of 4.125 billion euros.
The EU’s analysis is clear: Google’s key product is the search engine Google Search. That’s why we spin products and services that can usually be used without payment. The price: a wealth of collected user data, which in turn fuels the advertising business. With a market share of 80 percent in the EU, Android plays an important role in this network.
Then, on April 15, 2015, the report came: The commission is opening a procedure that is examining several business practices at the same time. The result followed on July 18, 2018: Google abused its dominant position in Android too, and the Commission imposed a fine of almost 4.343 billion euros – the highest fine ever imposed by a competition authority in Europe.
Four years later, the next chapter follows. Google had filed a lawsuit against the Commission’s decision with the European Court of Justice, which has now become loud Communication from the ECJ was essentially dismissed.
Google has demonstrably “committed the infringements intentionally”, but the account must be taken of “the development over time of the various aspects of the infringement and the complementarity of the practices in question”. The Court, therefore, sees it as appropriate to adjust the amount of the fine, but only to a small extent in relation to this. This is now set at EUR 4.125 billion.
Three Major Issues That Make Android unfair
According to the Commission – and now also the top European judges – Google has established “anti-competitive contractual restrictions for mobile device manufacturers and mobile network operators” around Android, some of these practices going back to 2011. These limitations had taken three main forms:
- “Distribution Agreements”: Mobile device manufacturers were required to preinstall Google Search and its Chrome browser in order to obtain a license from Google to use the Play Store.
- “Anti-fragmentation agreements”: Manufacturers were only able to pre-install the Google Search and Play Store apps if they also undertook not to offer any devices equipped with versions of the Android operating system that were not approved by Google.
- “Revenue-sharing agreements”: Mobile device manufacturers and mobile network operators were given a share of advertising revenue if they “did not pre-install a competing general search service on a predetermined range of devices.”
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