Google’s $5.1 billion fine by the European Union on Android: Here’s why it happened.
The European Union has fined Google an amount of nearly $5.1 billion in the Android antitrust case. Three reason why EU held Google to be guilty.
The European Union’s Competition Commission has imposed a fine of nearly 4.3 billion euros ($5.1 billion) on Google in the Android antitrust case. The commission ruled that Google forced manufacturers to install its search engine and Chrome browser on the Android operating system, and thus cemented its already dominant position in the market.
Google said it plans to appeal the decision. Google CEO Sundar Pichai wrote a blog post explaining why Android offers more choices to consumers. “We are concerned that today’s decision will upset the careful balance that we have struck with Android, and that it sends a troubling signal in favor of proprietary systems over open platforms…. Today’s decision rejects the business model that supports Android, which has created more choice for everyone, not less. We intend to appeal,” Pichai wrote.
Google is accused of stifling competition and denying consumers in the region choice around search engines with the way it operated its Android deals. We explain the three reason why EU held Google to be guilty:
Illegal tying of Google’s search and browser apps
The commission notes that Google’s licensing conditions for the Play Store “make it impossible for manufacturers to pre-install some apps but not others.” According to the Commission, Google engaged in two instances of illegal tying: one was with the Google Search app and second was with the Chrome browser.
The tying of Google Search as the default option on Android was found to be illegal as of 2011. According to the commission, the pre-installation of Google Search and Chrome have major consequences in driving traffic to Google, since both are important entry points for search queries on mobiles.
The Commission notes, “Pre-installation can create a status quo bias. Users who find search and browser apps pre-installed on their devices are likely to stick to these apps.” The Commission noted that in Google’s case its search engine was used more on Android where it was pre-installed, rather than on Windows Mobile devices, where users must download it.
This post is from https://indianexpress.com
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