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On the 18th, the European Union imposed a hefty fine of 4.34 billion euros on the grounds that Google has used Android to consolidate its search engine status, challenging the system. Free mobile operation of Google in exchange for a business model. If Google nods to the EU, the industry of action could change.
In addition to a fine of 4.34 billion euros, the Executive Committee of the European Union also asked Google to review contracts with dozens of partners, ordering Google to stop forcing Android partners to preload the device. Google search and Chrome application of the browser (application).
Google disapproved of the decision above and announced that it would appeal.
The Wall Street Journal reported that the EU had formally filed charges two years ago. However, Google replied that smart phone manufacturers can use the Android operating system for free, which will help the market to compete and lower the price of the product. Google believes that the EU complaint is false because sellers and consumers usually download programs from other providers on devices that use Android.
After the publication of the EU decision, the Google CEO, Sundar Pichai, posted on the blog: Android gives you more choice, and the 18-day decision rejects the business model that takes into Android charge.
The report pointed out that the 90-day deadline set by the EU to improve Google could shake the entire mobile industry, which would pose a huge challenge for Google.
The mobile business is the golden chicken of Google's parent company, Alphabet. According to market research firm eMarketer, Google is expected to account for more than $ 60 billion in mobile advertising this year. S & P Global Market Intelligence estimates that this will account for 44% of the annual $ 136 billion Alphabet business figure.
Google offers mobile phone manufacturers a free Android operating system, but requires preloaded services such as YouTube, Gmail and Google Maps to allow Google to collect large amounts of content from these popular programs to adapt ads to users. The European Union has determined that Google will reduce incentives for partners to pre-load hostile search and navigation programs, which will limit their ability to compete.
Google is forced to impose new terms, allowing mobile and telecom providers to freely host their own apps, register with Google's competitors and even charge Google preloaded programs.
Mark Mahaney, an badyst at RBC Capital Markets, points out that mobile and telecom providers may have more chips to charge Google, but because of the limited options of the mobile operating system, Google may also in turn, the provider who uses Android is charged.
The European decision also forced Google to allow mobile phone manufacturers to offer their own operating system based on the open source version of Android, which would make it difficult for Google to provide software. a standard mobile software compatible with all Android applications.
The New York Times reported that the decision highlighted the efforts of European authorities to regulate the technology industry, such as antitrust, privacy, taxation, dissemination of false news and hate speech. In addition to being heavily penalized by Google, Google must uncouple Android from its other services in Europe, which can result in lost revenue for users and advertising. However, Paul Weiss, former antitrust investigator of the US Federal Trade Commission (FTC), pointed out that it took several years for the authorities to make a decision, which amounts to making war yesterday and not following the constantly changing market. Change
The European Union has pointed out that if Google does not stop unfavorable competition in the market within 90 days, it would be penalized by the 5% of the average daily average income of the parent company. Alphabet. New York believes that Google's decision to appeal means that the case can be dragged on for several years.
(Author: Yin Junjie, first card Source: Flickr / JD Hancock CC BY 2.0)
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