European Commission - Press release Antitrust: Commission fines Google €4.34 billion for illegal practices regarding Android mobile devices to strengthen dominance of Google's search engine The European Commission has fined Google €4.34 billion for breaching EU antitrust rules. Google must now bring its practices “effectively to an end within 90 days or face penalty payments of up to 5% of the average daily worldwide turnover of Alphabet, Google’s parent company.”

Margrethe Vestager, the EU’s competition commissioner, acknowledged during a news conference in Brussels that Google’s version of Android does not prevent device owners from downloading alternative web browsers or using other search engines. “These practices have denied rivals the chance to innovate and compete on the merits.”

Google has built a massive business of banner and videos ads, thanks largely to its central role on Android devices. For example, in 2016: on Android devices (with Google Search and Chrome pre-installed) more than 95% of all search queries were made via Google Search; and

devices (with Google Search and Chrome pre-installed) more than 95% of all search queries were made via Google Search; and on Windows Mobile devices (Google Search and Chrome are not pre-installed) less than 25% of all search queries were made via Google Search. Users who find these apps on their phones are likely to stick with them and “do not download competing apps in numbers that can offset the significant commercial advantage derived on pre-installation.”

Google’s actions reduce the incentives for manufacturers to install and for users to seek out competing apps, it said. In the Android file, the European Commission has accused Google of requiring mobile manufacturers such as Samsung and Huawei to pre-install its search engine and Google Chrome browser on phones, and to set Google Search as the default, as a condition of licensing some Google apps. – Requiring “manufacturers to pre-install the Google Search app and browser app (Chrome), as a condition for licensing Google’s app store (the Play Store)”

– Paying “certain large manufacturers and mobile network operators on condition that they exclusively pre-installed the Google Search app on their devices”

– Preventing “manufacturers wishing to pre-install Google apps from selling even a single smart mobile device running on alternative versions of Android that were not approved by Google (so-called “Android forks”)”

“These practices have denied rivals the chance to innovate and compete on the merits. In particular, Google: has required manufacturers to pre-install the Google Search app and browser app (Chrome), as a condition for licensing Google's app store (the Play Store);

made payments to certain large manufacturers and mobile network operators on condition that they exclusively pre-installed the Google Search app on their devices; and

has prevented manufacturers wishing to pre-install Google apps from selling even a single smart mobile device running on alternative versions of Android that were not approved by Google (so-called "Android forks").
The European Commission fines Google €4.34 billion for breaching EU antitrust regulations, claiming that Google abused the dominant position of Android to promote their search product. Google announces it will appeal the ruling.