The ongoing E.U case against Google has taken a new turn. The European authorities have fined $5 billion to Google for Android Antitrust case, which is the biggest fine ever imposed by EU on any company for anti-competitive behavior. But, what made them do so? What’s the ‘behind the scene’ story?
Started around 3 years back, the European authorities claimed that the tech giant is misusing its power and position in the mobile market. The company is using the Android platform for advertising and entrenching its search-engine to add more bucks to their pocket.
Such practices have been depriving the rival companies of enjoying their share of innovation and competition in the market. While on the other side, these practices are compelling the Android users and app developers to use Google products. This has resulted in the establishment of a monopoly of Google (you can sense that…)
However, the things will change now. Earlier charged with $2.7 billion in correspondence to two antitrust issues, the tech giant is now fined for a record-breaking $5 billion.
Besides this significant fine amount, the European authorities have also introduced various remedies to loosen the grip of Google over Android – the platform that connects over 80 percent of the world to each other. This includes demolishing the Google’s power over pre-installing its own search engine and other apps in mobile devices.
According to Margrethe Vestager, the EU antitrust cop, the Google team has been given only 90 days to end the ‘illegal practices’ around Android OS. Otherwise, they might be awarded with another fine of up to 5 percent of the worldwide average daily revenue of the Alphabet, the parent company of Google.
But, is Google ready for this? Will Google pay this hefty amount?
As you can sense from CEO Sundar Pichai’s comments during the latest Google earning call yesterday, the tech giant is still appealing the decision. It is firing back at the European authorities saying that they do not have enough evidence to prove the claim. All the facts and figures shared are glorified to affect Google brand name.
The CEO said that Android was introduced 10 years back with an aim to make the mobile platform free and open to all. Today, there are more than 24,000 devices of every range from around 1,3000 different brands. He further pointed out that the Android platform has always encouraged phone makers, mobile network operators, Android app developers, and billions of users to use cutting-edge Android ecosystem for their business.
As compared to his combative tone used against the European Commission’s decision last week, he seems using a more conciliatory tone this time. This can be seen as an early sign that Google might settle down with Europe. In the recent interaction, the Google CEO said that they are analyzing the decision and will adopt a constructive approach. They are not only planning to better deal with the EU’s decision, but are also looking forward to keeping the Android’s open ecosystem’s profit to all the Android mobile users and Android app developers.
From this whole incident, it can be concluded that although the issue seems like on the verge of closing, the case will continue for some time. What do you think?