Trump slams EU over $6.87 billion fine on Google

Posted July 20, 2018

In the end, the Commission found that Google violated European Union antitrust laws and has given the company 90 days to clean up its act.

Yesterday Google was hit with the whopping fine by the European Commission. Rapid innovation, wide choice, and falling prices are classic hallmarks of robust competition and Android has enabled all of them.

Google's plan for Fuchsia OS is very clear, they want an operating system that can replace Android, a single OS that can be found in smartphones, tablets, computers and smart devices.

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Danish former minister Vestager spoke by telephone with Google chief Sundar Pichai on Tuesday night to tell him about the decision in advance. Crucially, by default all Android phones use Google as the default search engine and Google Chrome as the default web browser.

There is little doubt that Pichai is trying to warn customers, OEMs, and lawmakers alike that Android's inability to be used as a vector for getting Google apps and services into the hands of users could mean that it will need to make money in other ways - namely, charging for Android installations.

Google has a market share of more than 90 percent for general Internet search, licensed smart mobile operating systems and app stores for Android software, the European Union said in 2016.

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Google finally gave "financial incentives" to manufacturers and mobile network operators if they pre-installed Google Search on their devices, the commission said. In the post, Google took a firm stand for itself and said that Android has helped 1,300 different smartphone manufacturers to develop Android-based mobiles.

Having said that, the fine represents just over two weeks of revenue for Google parent company Alphabet, according to Reuters - a sum that "would scarcely dent" the company's current cash reserves of $102.9b.

It nearly doubles the €2.42b - about United States dollars $2.8b - that the European Union levied against the company previous year over promoting its own shopping comparison service at the top of its search results.

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Brussels has repeatedly targeted Google over the past decade amid concerns about the Silicon Valley giant's dominance of internet search across Europe, where it commands about 90 percent of the market.