Google has been fined a record breaking $5B by European Commission


Commissioner Margrethe Vestager, in charge of competition policy, said: "Today, mobile internet makes up more than half of global internet traffic".

The EC said Google granted "significant financial incentives" to some of the largest device manufacturers, as well as mobile network operators, on condition that they exclusively pre-installed Google Search across their entire portfolio of Android devices.

Pichai said that it made sense for Google to continue investing in Android, despite giving it away for free, because Google can offer phone makers the option of pre-loading a suite of popular Google apps - such as Search, Chrome, Play, Maps, and Gmail.

'These practices have denied rivals the chance to innovate and compete on the merits.

European Competition Commissioner Margrethe Vestager addresses a news conference on Google on July 18, 2018 in Brussels, Belgium.

In its justification for the historic fine, the EU's competition watchdog said it's based on the "duration and gravity of the infringement". If Google doesn't, it could pay an additional fine.

Google will have 90 days change its illegal practices, but it seems unlikely that the tech giant will comply so soon, so don't hold your breath. It can no longer engage in the three violating activities. Google requires that these third-party handsets use Google's search bar and default to the Chrome browser in return for access to the latest versions of Android.

Android is the most widely used mobile OS in the world, installed on roughly 76% of all smartphones, including those manufactured by Samsung, Sony and Huawei.

The Microsoft case was analogous to that involving Android-Microsoft was abusing Windows' dominance in the PC operating system market to push Microsoft's own products, namely Windows Media Player. "So, Google developed a strategy to anticipate the effects of this shift, and to make sure that users would continue to use Google Search also on their mobile devices".

European Union officials have been investigating Google contracts that require manufacturers of Android phones to take Google's search and browser apps and other Google services when they want to license the Play app store. This means that people are far more likely to use search apps and browsers already present on their devices, and are unlikely to download competing apps. The EU didn't believe that argument held water.

Most of all, the European Union is anxious that this harms you, the consumer, by restricting your choice and preventing innovation that could lead to better alternative mobile experiences for you in the future. "Finally, Google obstructed the development of Android forks, which could have provided a platform also for other app developers to thrive". "We will appeal the Commission's decision", he added.

European regulators have hit Google with a €4.3 billion ($5 billion) antitrust fine for abusing the dominance of its Android mobile operating system.

Shares in Alphabet, the company's parent, fell as much as 1.1% in premarket trading Wednesday after the size of the fine was reported.