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EU regulators hit Google with a record of 4.34 billion euros ($ 5 billion or 34,300 million rupees) in fine antitrust Wednesday for using its system of Android mobile operation to oust its rivals. of 2.4 billion euros (about 19.1 billion rupees) that the US technology company was ordered to pay last year on its online search service.
The fine represents just over two weeks of income for Alphabet. cash reserves of $ 102.9 billion (about 7 million rupees of lakh). Google said it would appeal the fine.
The EU's antitrust chief, the president of the European Commission, Commission President Jean-Claude Juncker, is expected to meet US President Donald Trump at The White House next Wednesday in an effort to avoid new tariffs threatened on EU cars in Trump's complaints about the US trade deficit.
Vestager also ordered Google to stop anti-competitive practices in contractual agreements with smartphone manufacturers and telecommunications providers.
"Google used Android as a way to cement the dominance of its search engine, which prevented rivals from innovating and competing in the global market. They denied to European consumers the benefits of effective competition in the important mobile sphere, "she said in a statement
. Apple, saying that the iPhone manufacturer was not a sufficient constraint because of its higher prices and change costs for users.
Android, which handles about 80% of the world's smartphones according to Strategy Analytics is the most important case of a trio of antitrust cases against Google.
Some major Android device manufacturers, including Samsung Electronics Co, Sony Corp, Lenovo Group and TCL Corp., declined to comment on the case of the EU.The actions against tech giants like Google and Facebook with their entrenched market power may lack force, said Ben Rogoff, fund manager of Polar Capital, who holds the title since its introduction in b ourse and is globally neutral on Google. As long as they offer great utility to their consumers, consumers will continue to use these platforms. If so, advertisers will also be attracted to these platforms because the returns on investment are very difficult to replicate elsewhere, "he said
. Geoff Blaber of CCS Insight
"Any action on the part of the EU amounts to shutting the door of the stable after the horse has jumped," he said.
"There is a significant risk of consequences that penalize the consumer.That goes from increased fragmentation to increased material costs if Google decided to change or adapt the Android business model." [19659002] The FairSearch lobbying group, whose 2013 complaint triggered the EU's investigation, welcomed the decision. The competition authorities said that Google prevented third parties using its product to display Google's search advertising competitors.
Vestager also ordered a series of measures against other American companies. tax practices in some EU states, requiring in particular two years ago that the Irish government take back from Apple 13 billion euros (about 1.03 million crores lakh) of 39; Apple.
© Thomson Reuters 2018
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