Google Hit With Record $5 Billion Fine in Android Antitrust Case
Google Hit With Record $five Billion Fine in Android Antitrust Case
A multi-year investigation of Alphabet'south Google in the European Union has resulted in a record $v billion (€4.34 billion) fine for the search giant. At result is the way Google requires device manufacturers to build Android software for phones and other devices in order to go access to the Play Store. In addition to the fine, Google has to change its ways in 90 days or face additional fines. Google'south CEO Sundar Pichai says the company will entreatment.
Android is an open up source software platform, just it's unlikely y'all have ever used a purely open source version of it. Device makers bundle various apps and services on phones, and the EU Commission claims Google unfairly abuses its market dominance in Europe to control what apps and services users come across.
For example, all Android phones with the Play Store are required by Google to also include apps like Chrome and Google Search. The EU says this gives Google an unfair reward over competitors, which is reminiscent of the Internet Explorer dispute with Microsoft more than a decade ago. There'south one notable difference hither: Google doesn't block OEMs from installing alternative apps — they simply can't exist the default. The European union says that'southward nevertheless illegal, though.
Google has long struggled to accost fragmentation of the Android platform, and one of its methods for doing so was likewise ruled illegal by the European union. Currently, an OEM that wants to partner with Google and sell certified devices with Google services cannot besides become out and sell devices with incompatible Android forks — something built from open source without back up for standard Android software and features. This prevents users from accidentally buying phones that don't piece of work with the Android content they expect, but the EU Committee says it also unfairly benefits Google.
Fine of €4,34 bn to @Google for 3 types of illegal restrictions on the use of Android. In this fashion it has cemented the say-so of its search engine. Denying rivals a adventure to innovate and compete on the merits. It's illegal under European union antitrust rules. @Google now has to cease it
— Margrethe Vestager (@vestager) July 18, 2022
The last of three declared violations by Google relates to payments fabricated to carriers and manufacturers to make Google the exclusive search provider on phones. This is probably the almost blatant abuse of Google'south market position, but as well the one least continued to the core Android business model.
According to Google CEO Sundar Pichai, Android has vastly increased choice in the smartphone market. He points out that Android competes with iOS, which is a completely closed platform. Pichai also stresses that Android has become so successful because of app support, and Google'due south technical compatibility rules have ensured that most devices piece of work with those apps. Google doesn't forcefulness any company to follow its rules if it wants to fork Android — here, Pichai points to Amazon'south Fire devices every bit proof.
Alphabet'due south stock price initially fell more than a percent following the announcement, just it has since recovered and is now only slightly lower. Google is highly-seasoned the European union decision, so this roller coaster is far from over.
Now read: 25 Android Tips to Make Your Phone More Useful
Source: https://www.extremetech.com/mobile/273715-google-hit-with-record-5-billion-fine-in-android-antitrust-case
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