Tag: EU fined Google

Google loses its multi-billion dollar Antitrust Case against European Commission

We all are aware of the ongoing Android Antitrust case between Google and EU. In this case the European Commission alleged Google of having control of their Play Store in Android devices to stifle competition for search. On July 18th 2018, the European Union fined Google with $5B for favoring its own product in the smartphones.

Why Google has been accused of Android abuse?

Actually, the key issues, in this case, were the licensing terms that bounded smartphone manufacturers to pre-install Google apps especially Google Search and Google Play in Android-based devices. Google Play has been the most dominant app store for all these years, the phone makers had no choice but to accept its terms. Google has even been accused of going a step further and paying to make its search engine default in all the new devices.

What were the motives behind this abuse?

Google has lost its biggest case, but the motive of doing it in the first place is still a debatable topic. Some say that Google wanted its apps to be familiar so that users can rely on it. This argument seems valid to some extent as users will seek it out which they have used it for a long time duration. Some other theories are also in the wind that Google tried to lower the value of being default search by pre-installing apps in devices.
Well, no matter what the motives were! But, European Commission has found Google guilty for Android abuse and it will have to pay. This Android abuse case has been in the top highlights lately and now we can only wait for any further lead on the issue.
Suggested Reading: Apple should also be fined over Antitrust Abuse, know why?

Apple also deserves an EU fine for its anti-competitive practices, like Google

On July 18th, 2018, Google was hit with a fine of $5B by the European Commission over Android Antitrust Abuse. Google is alleged to have pushed the users to its search engine and weakening its competitor search providers and app developers. But considering the consumer opinions and current scenarios, EC should have gone after Apple too.

Why is Google guilty of Android abuse?

Google violated one of the major EU law by making illegal agreements with smartphone development organizations. Thus, they dominated their search and browser apps in the smartphone. European Commission alleged Google of favoring Android and paying the manufacturers to install its apps on all Android devices for a Play Store license. This reduced the ability of other search providers and browser developers to compete in the market. Google licensed its operating system to smartphone manufacturers with the motive of enfeebling its competitors and favoring their own applications.

Why does the same apply to Apple?

Leonid Bershidsky, opinion columnist covering European politics and business said that “If Google is guilty in Android Antitrust Abuse, Apple should also be held to account for a similar violation”.  Although an Android user can easily shop in a few alternative stores, an iPhone user cannot go to any other alternative of Apple’s App Store without disabling operating system updates. Earlier, even US Court agreed to hear a case on the dominant position of Apple. This suit was on the behalf of those consumers who were forced to pay commission to Apple for every app’s price.

Apple is a sole seller in the iPhone market and it behaves exactly like one. In Apple’s iPhone, there is no way to delete the browser and even the users are forbidden from going for an alternative app. Google Chrome and other apps are available on iPhone, but they can’t be used for default purposes. You can specifically open these apps, but the default one would be of Apple’s. Google, however, gives it’s user the freedom to choose the desired one.

Along with app dominance, Apple software also provides very rough deals for the users. Unlike Google, it doesn’t even give us the luxury to switch applications if any of the Apple’s app fails. I think it’s even more anticompetitive of Apple that it simply pre-installs own software and hopes that the users will keep it because it’s good enough.

Final Words

This latest decision of the European Commission is the beginning of boosting the chances of success of the app developers. Others, who do the same, should also be fined or it will seem as a target on a U.S. organization rather than a step of stopping anticompetitive behaviors.

Being a monopoly in the iPhone market, Apple is favoring itself and locking out its competitors. So, the question arises that while kicking US tech giant Google, why haven’t the EU fined Apple too? Well, right now there isn’t any signs of EU going after Apple. However, with the arguments of Leonid Bershidsky and continuous antitrust inspection of Google, it seems that Apple will be in murky waters soon.

Read more about EU’s fine on Google at:

EU fined Google with $5B over Android Antitrust Abuse Case

Google to appeal against $5 billion fine by EU in Android antitrust case

Tech giant Google has confirmed that they will appeal against European Commission $5B fine over Android Antitrust Abuse asserting that Android operating system has created more choice for everyone, not less. India-born CEO of Google, Sundar Pichai defended Android, the popular OS by saying that rapid innovation, wide choice, and falling prices are classic hallmarks of robust competition and Android has enabled all of them.

Read more at:

EU fined Google with $5B over Android Antitrust Abuse Case

EU fined Google with $5B over Android Antitrust Abuse Case

On Wednesday, July 18th 2018, the European Union Commission imposed a fine of $5 billion on Google over antitrust of Android’s dominance in smartphone market. It’s being said that Google has pushed the users to its search engine with the motive of enfeebling its competitor search providers and app developers. Even last year, Google was slapped by EU regulators for market abuse and now it has happened again and this time it’s the tight one.

What is Google’s Android Abuse?

The EU commissioner for the competition Margrethe Vestage said,” Google has controlled Android to dominate its search engine and weaken its rivals from having the chance to innovate and compete as per the merits.” She added that Google offers services which we all like, but they can’t misuse their powers and favor their services over the competitors.

Basic reason behind EC imposing fine of Google are the agreements of Google with the Android smartphone developer organizations. European Commission has alleged Google of having their control over Android and forcing manufactures to install Google Search application and Chrome browsers in all Android devices for a Play store license. Although Android is an Open Source mobile software, which is available for free, yet they prevented manufacturers from pre-installing its apps if the Android version wasn’t pre-approved by the company which violates the competition rules.

In the Smartphone market, Android has 80% shares among mobile operating systems and Google’s search share in the EU market is over 90% in most countries. The EC also stated that Google’s investment in Android is because of the reason that it’s users’ shifted from the desktop to mobile devices. So, they planned it all along to dominate Android for the sake of boosting their search engine’s popularity.

What does Google has to say?

Google has denied all these allegations and said that they would appeal the commission’s decision of anti-competitive behavior. Google spokesman Al Verney said, “Android has always provided more choice for everyone, not less“. Google CEO Sundar Pichai argued that Android has expanded the choice for the users. The Android has enabled many app developers, including European ones, to make a living through the platform.

Final Words

Android antitrust abuse is about restricting competition from other search services to gain huge market share on Android. The EC has given Google, a duration of 90 days to end all the ongoing illegal practices. If this is not done, they will face more penalty payments of up to 5% of the daily worldwide business of Google’s parent company Alphabet. EU’s fine of $5 B on Google is more about preventing them from rolling its services to Android, than forcing the company to change Android significantly.

Article Source:

https://www.cnbc.com/2018/07/10/eu-hits-alphabet-google-with-android-antitrust-fine.html