EU may impose antitrust fine on Google, end tech giant's internet search monopoly

Moneycontrol News

The European Union (EU) could impose a multi-billion euro antitrust fine on Google by the end of this week for using its Android Operating System to increase its dominance over the internet search market, according to a Politico report.

EU said Google forced companies to pre-install its browser and search agent if they wanted access to its other apps. Google allegedly gave financial incentives to companies to pre-install its apps.

“Based on our investigation thus far, we believe that Google's behaviour denies consumers a wider choice of mobile apps and services and stands in the way of innovation by other players, in breach of EU antitrust rules," Margrethe Vestager, European Commissioner for Competition said.

In a response Google’s Senior VP for Global Affairs, Kent Walker said “No manufacturer is obliged to preload any Google apps on an Android phone. But we do offer manufacturers a suite of apps so that when you buy a new phone you can access a familiar set of basic services. Android’s competitors, including Apple’s iPhone and Microsoft’s Windows phone, not only do the same, but they allow much less choice in the apps that come with their phones. On Android, Google’s apps typically account for less than one-third of the preloaded apps on the device.”

Google also said it offers search with Google Play so that they can avoid charging licensing fees later which helps in bringing down the price of Android devices.

EU has not charged Apple as yet, even though they tightly control their own mobile software.

With the next generation of users heading towards mobile internet, if EU rules against Google, it will mean that Google will lose the monopoly over the internet search market.

The EU had earlier imposed a fine of more than 2.4 billion euros on Google for manipulating its results page to promote its own shopping services.