Google Fined RM20.3 Billion By EU Over Abuse Of Android OS

Jul 20, 2018, 18:27
Google Fined RM20.3 Billion By EU Over Abuse Of Android OS

The EU also said that Google forces handset makers to pre-install Google Search and its Chrome browser as well as the Google Play app store on their Android devices.

The US is unlikely to match the European Union's fine.

The European Commission on Wednesday fined Google a record $5 billion for forcing cellphone makers that use the company's Android operating system to install Google's search and browser apps.

All that being said, Fuchsia OS is still very much a work in progress, and it has yet to be signed off as the next major step for Google by either the CEO Sundar Pichai or Android and Chrome chief Hiroshi Lockheimer.

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.

The Android case originated when a lobbying group called FairSearch - with members then including huge tech companies like Microsoft, Nokia and Oracle - complained that Google was unfairly tilting the field of competition. The 4.34 billion euro (US$5 billion) fine is almost double the previous penalty that the company was ordered to pay a year ago, but it represents a little more than two weeks of revenue for its parent company, Alphabet Inc.

Neither fine will cripple the company.

"If the U.S. would impose these auto tariffs that would be very unfortunate but we are preparing together with our member states a list of rebalancing measures as well", European Union trade chief Cecilia Malmstrom said on Thursday. "What would serve competition is to have more players", Ms. Vestager said. It was clear from the beginning that it was Google's intention to replace Android at some point, we just didn't know exactly when.

In an interview with CBS in Scotland last week, Trump described the European Union as a "foe".

He is also considering tariffs on European cars and parts that the US imports. This means that we earn revenue only if our apps are installed, and if people choose to use our apps instead of the rival apps.

It also argues that not supporting so-called "forked" versions of Android ensures a baseline of experience across some 24,000 different models of Android devices.

They have likewise taken a harder line on data privacy.

The head of the U.S. Federal Trade Commission said on Wednesday he would closely review the European decision.