Google penalized for 3 types of restrictions on the use of android.

On July 18th 2018, European Union slammed a fine of € 4.24 billion ($ 5 Billion)on US tech giant Google. This is the biggest antitrust penalty on any company in the history.

Reports came through official tweet from Margrethe Vestager European commissioner for competition on July 18th. According to the tweet fine was charged for three types of illegal restrictions on the use of android. Google is charged of boosting its search engine and web browser chrome by forcing mobile phone manufacturers and in some case paying them to preinstall the Google Search engine and web browser.

Tweet from the also said “In this way it has cemented the dominance of its search engine. Denying rivals a chance to innovate and compete on the merits. It’s illegal under EU antitrust rules. @Google now has to stop it”.

In a interview to CNBC Margrethe Vestager said this type of behavior locks down options for other mobile manufacturers. There is no competing android version in the market. She also gave example if you are a mobile manufacturer and you want to use Google play store for your customers to install apps on its devices, Google would say fine but then you would have to take our search app and Google chrome as well and in this way you would be obliged not only to use these two apps but to make it as the only search app. She also stated that this is not something which has started recently, this strategy is into effect since 2011. She also stated that Google should stop this behavior and has given 90 days to put an affective end to this infringement. Which will free up the market and mobile manufacturers can use other android systems for innovation and better user experience.

 

Google CEO responded to the fine saying “the decision will upset the careful balance of android system. He also said they have strong case for the benefits that android has brought to the European marketplace as well as globally and this is why we intent to appeal”. Google CEO Sundar Pichai published a blog post shortly after the fine was announced, giving the reasons he disagrees with the EU’s decision and saying that company plans to appeal to the fines imposed.

The news got heated when US president Donald Trumph tweeted that a European Union fine slammed on Google is proof that EU has “taken advantage of the US.”

Earlier in 2017 also Google has been fined for 2.7 Billion. Intel another tech giant from Silicon Valley had faced fines against EU antitrust rules. The decision of both Google cases and the Qualcomm case was in the hands of a 23-person unit headed by Nick Banasevic. Vestager has also rolled out the EU’s biggest ever cartel fine: €3.8 billion in 2016 and 2017 against five truckmakers that conspired on pricing.

The EU frequently takes tech companies to task over issues such as taxes, antitrust issues and privacy, but Trump is interpreting this particular fine as a slight against the US.

 

 

On July 18th 2018, European Union slammed a fine of € 4.24 billion ($ 5 Billion) on US tech giant Google. This is the biggest antitrust penalty on any company in the history.

Reports came through official tweet from Margrethe Vestager European commissioner for competition on July 18th. According to the tweet fine was charged for three types of illegal restrictions on the use of android. Google is charged of boosting its search engine and web browser chrome by forcing mobile phone manufacturers and in some case paying them to pre-install the Google Search engine and web browser.

Tweet from the also said “In this way it has cemented the dominance of its search engine. Denying rivals a chance to innovate and compete on the merits. It’s illegal under EU antitrust rules. @Google now has to stop it”.

In a interview to CNBC Margrethe Vestager said this type of behavior locks down options for other mobile manufacturers. There is no competing android version in the market. She also gave example if you are a mobile manufacturer and you want to use Google play store for your customers to install apps on its devices, Google would say fine but then you would have to take our search app and Google chrome as well and in this way you would be obliged not only to use these two apps but to make it as the only search app. She also stated that this is not something which has started recently, this strategy is into effect since 2011. She also stated that Google should stop this behavior and has given 90 days to put an effective end to this infringement. Which will free up the market and mobile manufacturers can use other android systems for innovation and better user experience.

https://www.cnbc.com/video/2018/07/18/eu-commissioner-vestager-google-fine-antitrust-android.html

Google CEO responded to the fine saying “the decision will upset the careful balance of android system. He also said they have strong case for the benefits that android has brought to the European marketplace as well as globally and this is why we intent to appeal”. Google CEO Sundar Pichai published a blog post shortly after the fine was announced, giving the reasons he disagrees with the EU’s decision and saying that company plans to appeal to the fines imposed.

The news got heated when US president Donald Trumph tweeted that a European Union fine slammed on Google is proof that EU has “taken advantage of the US.”

Earlier in 2017 also Google has been fined for 2.7 Billion. Intel another tech giant from Silicon Valley had faced fines against EU antitrust rules. The decision of both Google cases and the Qualcomm case was in the hands of a 23-person unit headed by Nick Banasevic. Vestager has also rolled out the EU’s biggest ever cartel fine: €3.8 billion in 2016 and 2017 against five truckmakers that conspired on pricing.

The EU frequently takes tech companies to task over issues such as taxes, antitrust issues and privacy, but Trump is interpreting this particular fine as a slight against the US.

 

Author: admin

Leave a Reply

Your email address will not be published. Required fields are marked *