Google is fined $5 billion for its illegal restrictions

Jermaine Castillo
July 20, 2018

Donald Trump has attacked the European Union's decision to fine Google $5.1bn (£3.8bn) for "serious illegal behaviour". There are actually a few different angles to the Commission's complaint, but to boil it down, it essentially claimed that Google used Android to cement its search dominance. The European Union just slapped a Five Billion Dollar fine on one of our great companies, Google. The European Union started a flame war when it fined the United States firm $5 billion for monopoly violations. "They truly have taken advantage of the US, but not for long!" he tweeted.

The president appeared to be using the antitrust fine as a salvo in his escalating trade war with the EU.

The new sanction almost doubles the previous record European Union antitrust fine of €2.4 billion, which also targeted Google, in that case for the Silicon Valley titan's shopping comparison service in 2017.

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Google has said it will appeal the decision - the latest in a series of actions against the company.

In a post proclaiming that Android has created more choice, not less, Google CEO Sundar Pichai pointed out that Hey, 11 years ago, Google chose to give away Android. As part of the European ruling, Google must stop forcing its web browser and search service on manufacturers, and stop any efforts to block forked versions of Android.

Ms. Vestager also ordered Google to halt anti-competitive practices in contractual deals with smartphone makers and telecoms providers within 90 days or face additional penalties of up to 5 per cent of parent Alphabet's average daily worldwide turnover.

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Asked whether breaking up Google would solve the issue, a call made by a number of Google foes, she said she was not sure that was the solution. That would yield crucial real estate for app developers given that about 80 percent of smart mobile devices use Android. "But we are concerned that today's decision will upset the careful balance that we have struck with Android, and that it sends a troubling signal in favor of proprietary systems over open platforms", Pichai concludes.

Previous year eMarketer forecast almost $50billion would be made by Google in 2017 from mobile ad revenue.

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