The tensions between Brussels and Google are not ready to calm down. The European Union has just forced fine on the company. On Wednesday, the regulators knocked Google with a huge €4.34 billion antitrust fine for using its Android operating system to compress the opponents.
The European Union has just imposed a record fine to the US firm. Brussels has criticized the company for abusing the leading position of its operating system for Android smartphone, to impose a little more supremacy of its flagship applications, including its search engine.
This calculation matches up to 5% of Google’s revenue in 2017, calculated on the basis of the value of revenue that Google achieves through related advertising services on Android devices in the European Economic Area. The fine is double if we compare it with which the company has been charged last year over its online shopping search service, which was €2.4 billion.
The EU has also given Google 90 days to stop illegal practices on the sting of “penalties of up to 5% of Alphabet’s global average daily turnover (Google’s parent company).”
The company says “Android has created more choices for everyone, not less. Vibrant ecosystem, rapid innovation and lower prices are classic hallmarks of robust competition”
The King of Silicon Valley will noticeably appeal against the verdict. Its line of defense is based on the number of opportunities created for all by its mobile operating system. Google snapped that Android is an open and free system. But to handle the updates of the latter, the firm has set up a contract called MADA (Mobile Application Distribution Agreement), which let the firm to earn more money.
The manufacturer who wants to use it and offer by default one of Google’s applications must accept the other ten applications of the virtual pack of the company: Search, Maps, Drive, Play Music, Play Movies, Photos, Duo, Gmail, YouTube, Play Store.
Since 2016, the EU accuses the group of forcing makers like Huawei or Samsung to install and set default Google Search on European phones. The Commission has noted that Google has prevented manufacturers wishing to pre-install Google applications from selling smartphones running on other versions of Android not approved by Google.
The charge somehow comes against a condition of strain between the EU and the United States, which is already struggling over a number of trades and related to NATO matters.