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Google got a nasty blow by EU: record fine conceived

Its not a welcoming day for Google as CEO responded over the imposed record fine as they have lost the case this morning, Though CEO Sundar Pichai says Google gives level playing field to all developers to maintain healthy competition as its open source which is assumed biased by some regional unions and challenged us in courts.

The European Union hit Google with a record $5 billion antitrust fine, accusing the company of illegally using its Android mobile operating system to cement its dominance over other online services.

Margrethe Vestager, the European Commission’s competition chief, said that Google’s arrangements with phone manufacturers suppressed competition.

“In this way, Google has used Android as a vehicle to cement the dominance of its search engine,” Vestager said.

“These practices have denied rivals the chance to innovate and compete on the merits. They have denied European consumers the benefits of effective competition in the important mobile sphere. This is illegal under EU antitrust rules.”

The decision tops the record previously set by the $2.7 billion fine that Vestager hit Google with last year for its practice of elevating its own comparison shopping service in search results over rivals’. The EU also has an open antitrust investigation into Google’s advertising practices.

The commission, which is the enforcement wing of the EU, cited Google’s practices of forcing manufacturers to pre-install the company’s apps on Android phones. Device makers are required to pre-install the Google’s Search and Chrome apps in order to gain access to the Android app marketplace.

Vestager also accused Google of making illegal payments to manufacturers to ensure that its apps are pre-loaded.

And the decision cites Google’s efforts to prevent any alternative versions of the Android system from being developed and deployed.

Under the terms of the decision, Google will have to cease the three practices and pay the $5 billion fine with 90 days. After that, the company can be fined up to 5 percent of its parent company Alphabet’s daily revenue for non-compliance.

Google is already vowing to appeal the fine.

“Android has created more choice for everyone, not less,” a Google spokesperson said in a statement. “A vibrant ecosystem, rapid innovation and lower prices are classic hallmarks of robust competition. We will appeal the Commission’s decision.”

Google CEO Sundar Pichai responded with a blog post in which he argues that Android’s platform is open and promotes competition between developers.

He argues that most phones come with dozens of pre-loaded apps from a wide variety of companies, and consumers can always download others if they’re unsatisfied.

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