Why the EU Just Ordered Google to Pay a $5B Fine

EU google antitrust

European Union officials have been investigating Google contracts that require manufacturers of Android phones to take Google's search and browser apps and other Google services when they want to license the Play app store. Even for a company as massive as Google, $5 billion isn't exactly pocket change; it represents about 40 percent of Google's net profit in 2017, according to the Wall Street Journal. The issue, the European Union says, is that Google requires Android device makers to pre-install the Google search and browser apps on "practically all" devices sold in Europe; in the past, the company used financial incentives to further encourage pre-installation.

Google's practices have denied rival search engines the possibility to compete on the merits.

Of course, Google denies the EU's contention and will likely do everything it can to appeal the decision.

The decision comes just over a year after the Commission slapped a landmark €2.4 billion penalty on Google, a unit of Alphabet Inc, for favouring its shopping service over those of competitors.

The EU went after Android because of said contracts which pretty much prevented vendors from offering alternatives to non-Google apps on Android devices.

Google is the dominant force in mobile operating systems in Europe and overseas. The tying practices ensured the pre-installation of Google's search engine and browser on practically all Google Android devices and the exclusivity payments strongly reduced the incentive to pre-install competing search engines.

President Trump lowers expectations for Putin meeting
CBS's Jeff Glor asked Trump whether he would ask Putin to extradite those Russians to the United States. In an interview on Sunday, Trump downplayed the significance of the tete a tete.

The firm has also claimed distributing Google Search and the Play store together had made it "keeps manufacturers' costs low and their flexibility high, while giving consumers unprecedented control of their mobile devices".

Google is appealing the decision. Google's parent company, Alphabet, has been given 90 days in order to do or else it could be hit with more fines of up to five per cent of its daily turnover. The Commission is said to have been investigating contractual stipulations regarding the pre-installation of Google apps and services on non-Google phones, as well as allegedly incentivizing the exclusive use of its products (find out more about that in our previous coverage). The company was also criticized for paying network operators and phone manufacturers to make its search app the only one installed on handsets.

Google also prevented manufacturers from selling smartphones that run on rival operating systems based on the Android open source code, the commission said.

The EU is concerned that Google's agreements with phone makers such as Huawei, Samsung and LG are putting those companies at a disadvantage since they're so completely dependent on Android. By doing these deals, Google has broken European antitrust laws and therefore must be punished, but also forced to change its practices.

Its Play Store accounts for more than 90% of apps downloaded on Android devices in Europe.

Related News:

  • Coats Releases Statement Reaffirming Russia Meddled in 2016 Election

    Coats Releases Statement Reaffirming Russia Meddled in 2016 Election

    And thus far the only figure in the administration to contradict Mr Trump has been Director of National Intelligence Dan Coats. The party of Donald trump criticized his statement at a press-conference with Vladimir Putin in Helsinki.
    National Hot Dog Day 2018 deals and freebies

    National Hot Dog Day 2018 deals and freebies

    Wednesday, hot dogs are 99 cents each, limit two and dine-in only, for members of the My Hwy 55 Rewards Program. At Dog Haus , you can get a free Haus Dog on National Hot Dog Day when you download their app and register.
    Major upset: Anderson ousts defending champ Federer

    Major upset: Anderson ousts defending champ Federer

    Djokovic overcame a series of rows with the chair umpire to record a 6-3 3-6 6-2 6-2 victory over Japan's former US Open finalist. Inevitably, the match went the whole length and then some more, until Anderson grabbed the only break-point in the entire set.
  • Putin summit: Five standout moments from the Helsinki meeting

    Putin summit: Five standout moments from the Helsinki meeting

    What's the matter with you?' 'What happened to the strong words, and to the strength of President Reagan when he said "Mr. He later went on to say that before the meeting, the USA relationship with Russian Federation was a "potential problem".
    France coach, players and President Macron react to World Cup victory

    France coach, players and President Macron react to World Cup victory

    There were bacon and eggs on offer but Vicelich said he wouldn't be eating until after the final whistle. I think that overall Croatia played a great tournament.
    Israel agrees to cease-fire with Hamas

    Israel agrees to cease-fire with Hamas

    Gaza health officials say more than 130 Palestinians were killed and 15,000 others injured by Israeli forces during the protests. A spokesman for Israeli Prime Minister Benjamin Netanyahu did not respond to a request for comment.
  • US  lawmakers condemn Trump over Helsinki summit with Putin

    US lawmakers condemn Trump over Helsinki summit with Putin

    John Cornyn of Texas, said sanctions may be preferable to a nonbinding resolution that amounts to "just some messaging exercise". At the news conference, Trump was invited by reporters to offer any criticism of Russian Federation but he repeatedly declined.

    "It was a mistake": excuse to the Russians for "Glory to Ukraine"

    French right-back Lilian Thuram scored his only two goals in a storied 142-cap worldwide career in that semi-final 20 years ago. Liverpool FC have submitted a £17.5m offer for Besiktas and Croatia defender Domagoj Vida, according to a report in Turkey.
    John Isner loses to eight seed in longest semifinal match at Wimbledon

    John Isner loses to eight seed in longest semifinal match at Wimbledon

    Soon, they were meeting for an embrace, with Anderson being the first South African man in 97 years to reach the Wimbledon final. To say that Kevin Anderson won this interminable Wimbledon semifinal, and that John Isner lost it, didn't really seem fair.
  • Lava flies through roof of Hawaii tour boat, injuring 23

    Lava flies through roof of Hawaii tour boat, injuring 23

    A small "island of lava" has popped up near Kilauea in Hawaii , as US authorities continue to monitor activity at the volcano. Even though the vast majority of the Big Island is unaffected by the lava, concerns about the volcano have hurt tourism there.
    Netflix shares take hit as subscriber slip hints at 'lumpy' road ahead

    Netflix shares take hit as subscriber slip hints at 'lumpy' road ahead

    The S&P 500 now trades at 22 times earnings, and the average media industry stock is worth just 14 times earnings. Second-quarter revenue was $3.91 billion, which was slightly lower than the $3.94 billion predicted by analysts.
    Trump Says Putin ‘Probably’ A ‘Ruthless Person’

    Trump Says Putin ‘Probably’ A ‘Ruthless Person’

    After meeting the queen at Windsor Castle, Trump headed to Scotland, where his mother, Mary Anne, was born. This funding structure supported their efforts to buy key accounts, servers, and domains.


Most liked

Trump says discussed Middle East with Putin, made progress on conflicts
When asked if he believed the findings of his intelligence agencies on Russia's meddling, Trump had said: "My people came to me". But Texas Republican John Cornyn said the Senate should focus on "additional sanctions instead of just some messaging exercise".

Crazy Kenyans Pictured Lining Up For a Hug From Croatian President
Putin said foreign visitors holding "fan ID" cards for the World Cup could have visa-free entry to Russian Federation for the rest of 2018.

Antonio Conte Writes Emotion Message To Chelsea Following His Sacking
Sarri's first competitive match is against Manchester City in the Community Shield at Wembley on Sunday, August 5. Sarri said: "I am very happy to be coming to Chelsea and the Premier League ".

How Elon Musk can regain investors' confidence
With Tesla's market value down by $2 billion in one day, shareholders would be better off if Musk had followed his own advice. Divers completed the rescue of 12 boys last week while saying that Musk's submarine was "not practical for this mission".

Putin: Trump was 'of no interest' to Russian Federation before 2016 election
Why would Mueller issue the indictment just three days before the summit, asked Wallace. "It makes us less safe", Biden said. The comments ignited a firestorm in Washington and received condemnation from both Republicans and Democrats.

Blockbusters in Alaska set to close; 1 store left in US
Oliver said he hoped Russell Crowe memorabilia, including the jockstrap, would help the store attract customers to the store. In an interview Thursday, Daymude said many customers had called or stopped by to say they'll miss their local Blockbuster .

Pakistan mourns victims of election rally bombing
Sharif returned from London with his daughter Maryam to face a 10-year prison sentence on corruption charges, officials said. Durrani is running in the July 25 vote against popular former lawmaker Imran Khan.

France coach Deschamps on verge of greatness
The youngster proved the difference by scoring a brilliant second-half double as France beat Argentina 4-3 in a last-16 thriller. I pay more attention to the young players. "Any team is then able to climb mountains", Deschamps said.

'Smoking hot' Pacquiao, 39, rolls back years to knock out Matthysse
And when Matthysse went down for the third time in the seventh, referee Kenny Bayless stepped in to stop the contest. Pacquiao meanwhile recorded his 60th career victory en route to his 11th world title.

Croatia unsure if Nikola Kalinic will receive World Cup medal
Southgate said he had tried to inspire his players ahead of the third-place game, adding that he very proud of his team despite the second straight defeat.

Trump stokes Britain's Brexit turmoil at start of visit
He then travels north to Scotland where he will spend the weekend privately, joined by son Eric Trump. The prime minister will host a gala dinner and a meeting with Trump, giving them time to talk.

Donald Trump shares letter from Kim Jong Un, says ‘progress being made!’
Trump shared the letter in a tweet Thursday, writing, "A very nice note from Chairman Kim of North Korea ". The idea of "practical actions" is hardly a firm stance issued by the North Korean dictator.

Public 'Got to See the Bias' at Strzok Hearing, DeSantis Says
Darrell Issa made Strzok read some of his texts aloud, including some with profane language. At this point, Gohmert cut back in, and the two spoke loudly over one another.

Louisville Officially Taking Papa John's Name Off Football Stadium
In a radio interview with WHAS in Louisville on Friday, Schnatter said he was "just talking the way that the Colonel talked". Schnatter has also stepped down as the company's board chairman after apologizing for the comment earlier this week.

Awkward timing for Russian Federation probe indictments
Trump has several times assailed Germany for not spending a large enough proportion of its gross domestic product on defense. Mark Warner (D-VA) added his voice to the mix, telling reporters that Trump's meeting with Putin should not be one-on-one.