Tech Trouble: EU fines Google $5 billion for Android antitrust violations
Updated 12:37, 22-Jul-2018
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The EU has slapped a record 5-billion-dollar antitrust fine on Google, for illegally using its Android operating system to strengthen the dominance of its search engine. Google has been bundling its search engine and Chrome apps into the operating system, and also allegedly blocked phone makers from creating devices that run forked versions of Android. Mariam Zaidi has more from Brussels.
MARIAM ZAIDI BRUSSELS "It's a story that Google probably wishes users weren't searching for. On Wednesday the European Commission fined the US internet giant a whopping 4.34 billion euros for breaching EU antitrust rules. The Commission says that Google has abused its power to ensure its market dominance. And it's that very abuse - over the market dominance - that has seen them fall foul of EU rules. For example: Google's app store, the Play Store, accounts for more than 90% of apps downloaded on Android devices. Plus the Commission says Google made payments to large manufacturers and mobile network operators on condition that they exclusively pre-installed the Google Search app on their devices."
MARGRETHE VESTAGER EU ANTITRUST COMMISSIONER "Google has used Android as a vehicle to cement its dominance of its search engine. These practices have denied rivals the chance to innovate and compete on the merits. They have denied European consumers the benefits of effective competition in the very important mobile sphere. This is illegal under EU antitrust rules."
MARIAM ZAIDI BRUSSELS "Google has 90 days to comply. Or it faces penalty payments of up to 5% of the average daily worldwide turnover of Alphabet - Google's parent company. And Wednesday's ruling also opens the flood gates Google is also liable to face civil actions for damages that can be brought before the courts of the Member States of any person or business affected by its anti-competitive behaviour. Mariam Zaidi, CGTN Brussels."