For Google, a fine of 4.3 billion euros "is a parking ticket"

4.3 billion euros. The fine imposed on Google by the European Commission on Wednesday for abuse of dominant position, constitutes a new record. But for the Californian company, which generates an annual turnover greater than 100 billion dollars, it is "a parking PV," said Matt Stoller, a researcher at the Open Market Institute. On the other hand, the decision to prevent Google from forcing its Android partners to pre-install its home apps on our smartphones could "threaten its business model."

A fine record

"Google has used Android as a vehicle to cement the dominance of its search engine. These practices have denied rivals the chance to innovate and compete on the merits. $ 4.34 billion for breaching EU antitrust rules. " @investing https://t.co/ftSJnGQ6rG

– European Commission ?? (@EU_Commission) July 18, 2018

"Google used illegal practices to cement its dominant position" on its Android mobile system, said EU Commissioner for Competition Margrethe Vestager at a press conference in Brussels. The Commission accuses the Web giant of forcing its Android partners to pre-install Google apps like Search, Chrome, YouTube or Gmail if they want to offer their customers access to the Google Play store. Clearly, the EU estimates that Google takes advantage of its dominant position on Android, installed on nearly 8 out of 10 smartphones in the world, to favor its own apps, thus killing all competition.

"A PV "

If Matt Stoller compares the penalty to" a parking ticket ", it is because it represents less than 4% of Google's 2018 forecast revenue ($ 136 billion, according to forecasts from S & P Global Market Intelligence). Mark Patterson, a professor of antitrust law at Fordham University, says it's a "pat on the fingers, yes, but a vigorous step" that represents about 1.5 months of profits for Google.

"Business model under threat"

"Today, the Commission's decision rejected the economic model that makes Android live (…) That's why we will appeal" reacted Google CEO, Sundar Pichai, in a blog post. More than the fine, the EU has indeed given Google 90 days to stop forcing its partners to preinstall its apps. "It threatens its business model," based on the exploitation of personal data to offer targeted advertising, says Matt Stoller. Mark Patterson, however, believes that as in the case of Microsoft / Windows with Internet Explorer, the decision comes "too late". Gmail, Maps and Search have become so important and central apps that users will download them even if they are not preinstalled.

Can Google be dismantled?

Matt Stoller is adamant, "a fine is a first not but we must go further and dismantle Google, Facebook and Amazon. According to him, in light of the abuses of personal data, especially in the Cambridge Analytica case, "if we do not do it, we will not have any more democracy". The nemesis of Gafa (Google, Apple, Facebook and Amazon), Margrethe Vestager, however, is "not sure" that cutting the giants of the Web "is a miracle cure for competition." Since the election of Donald Trump, several elected officials of both sides seem to caress this idea. But according to Mark Patterson, such a scenario remains quite improbable for the moment, "unless we discover major abuses of freedom of expression."