Google is accused for violating antitrust laws of its search engine dominance on mobile phones which stifled competition in the same time.
For its illegal behavior, Google fined 4,35 billion euros which equals to US$5 Billion. The size of the penalty itself might be less important as it is only less than about 1% of Google’s annual revenue. On the other hands, EU also forces Google to change it business practices which is the real challenge for Google.
Last year, the EU imposed Google for its internet shopping service. This time, it is accused to violate 3 illegal restrictions to cement it dominance in search engine through its Android software. First, using restrictive licensing practices where Google Search was required to be pre-installed by manufacturers as condition for licensing Play Store. Second, preventing device manufacturers from running competing system that haven’t been approved by Google. Third, the EU discovered consumer choices denial through its investigation over agreements made by Google with manufacturers and mobile operators to pre-install Google Search.
Stated by Margrethe Vestager – European Commissioner for Competition, ‘They have to pay the fine of 4,34 billion euros and they have to stop their illegal behavior. They have to put a stop to the infringement in an effective manner, and they have to do so in 90 days,” while Google plans to appeal. In contrary of Vestager’s view on these punishment that could give other applications room to compete and let the user to experience other possibly better applications, Google sees a vibrant ecosystem, rapid innovation, and lower prices are classic hallmarks of robust competition where A droid has created more choices for everyone, not less.