Google hit with record fine for falling foul of EU rules

Tech giant Google was fined 4.3 billion euros ($5.1 billion) on Wednesday by European Union regulators who said it abused its dominant position to ensure Android operating system users conducted online searches with the company’s Chrome browser.

The Financial Times said the record-breaking ruling was the most consequential decision Brussels had made in its eight-year antitrust battle with the United States company.

Google’s parent, Alphabet, must change its business practices in 90 days or face further penalties, of up to 5 percent of its average daily turnover.

Margrethe Vestager, the EU’s competition commissioner had already hit the company with a $2.8 billion fine over issues with its shopping comparison service, something the company is appealing against. The BBC noted that the regulator is also investigating complaints against the way in which the company places ads through its business AdSense.

Wednesday’s ruling had been expected earlier this month. Reuters said it was postponed to avoid clashing with President Donald Trump’s visit to Europe.

Bloomberg said the ruling was the culmination of an investigation that began in 2015, when Android had 64 percent of Europe’s handset market. The probe followed a compliant by a group called Fairsearch, which comprised rivals Microsoft, Nokia, Oracle and others. Android, now has 74 percent of the European market, according to research company Statcounter.

Google has denied wrongdoing and said it did not oblige device-makers to preload any of its apps.

“The commission’s approach ... would mean less innovation, less choice, less competition, and higher prices,” Google’s global affairs manager said in a blog, while noting that customers had an alternative in Apple’s products and its iOS operating system.

The Financial Times said Kent Walker, Google’s general counsel, also criticized the ruling, saying: “The commission’s case is based on the idea that Android doesn’t compete with Apple’s iOS. We don’t see it that way. We don’t think Apple does either. Or phonemakers. Or developers. Or users.”

The commission wants Google to ensure the Chrome browser is not the default browser for devices using the Android operating system. And it says the company should not pressure manufacturers to favor the Chrome operating system. Vestager claims mobile operating networks and device manufacturers were paid anti-competitive financial incentives to pre-install Google’s apps on devices.

Google faced similar complaints in Russia. Android users there are now asked to choose between Google, Yandex, and Mail.ru when they first use their devices.

Google can appeal Wednesday’s ruling to European courts, a process that could last years.