Google is being fined for the world record fees ever. EU Antitrust Regulators has imposed a fine of $5 Billion of the tech giant for abusing the dominance of its Android platform. For the people who are not aware of such crime, the companies are fined for their illegal way of establishing their dominance. Margrethe Vestager, Competition Commissioner said that “Google has violated 3 types of illegal restrictions on using Android. They denied their rivals a chance to innovate and compete. And, this is illegal under EU’s Antitrust rules. Hence, Google has to stop this”.
Talking about the issue, Margrethe said that “Mobile Internet is one of the major sources of internet traffic. Since Android phones have a large market share, Google is using it to its optimum benefit. It is driving the traffic from these Android devices to their web. This eliminated their competitors to innovate and compete with them. The European users have been kept away from other competitors which is illegal under the Antitrust law”.
Penalties Imposed On Google
Google was fined under three illegal restrictions. They are,
- Google requires its Android users to install the Search App and Chrome for using the Play Store.
- They have partnered with various manufacturers and operators. Using this they have their Search App and Chrome pre-installed on a majority of the devices.
- They have prevented the manufactures from selling smartphones which are running on alternative versions of the Android.
Moreover, Google is blamed for having breached the rules since 2011 itself. In 2013, the commission notified Google of such issue and they stopped partnering with companies. And, they ended it in 2014.
The Main Issue
Google was accused strongly on these issues. With the inclusion of their search apps, they paid manufactures that no other search apps should be pre-installed making it easy for them to beat their rivals. Amazon came up with its Fire OS, an Android Fork but Google made arrangements to stop it from spreading illegally. Due to the restrictions imposed by Google, manufacturers were not able to launch the new device with the Fire OS.
The conference was concerned with Google destroying the chance of their rivals to make any commercial success. Since the competitors were not given a chance to try itself, it is illegal according to the Antitrust law. The new decision will allow manufacturers to try new OS and other stuff for increasing the reach of the competitors. If the competitors have something well made, they should be given a chance to make it to the market.
In 2015, Many companies complained about Google for their unethical behaviour in trying to capture the market. The EU said that they will be investigating the matter and fine Google if it was true. Google’s parent company Alphabet Inc. made a revenue of about $110 billion last year. Going with that, EU is fining them nearly half of what could be the maximum fine imposed on them. Google will have to readjust its planning and come up with better pricing to make people be engaged with them.