Google detonates Brussels after a record fine of 4.3 billion euros

Google accused Brussels of trying to dismantle its lucrative business model for smartphones and other mobile devices on Thursday, while it was considering seeking urgent judicial protection against the antitrust decision of the EU of 4.3 billion euros. 19659005] The European Commission gave the US group 90 days to revise its Android mobile operating system, demanding that it remove illegal restrictions aimed at thwarting competition and generating more traffic for the search engine. Google.

Although the decision marks by far the most important decision of Google's eight-year antitrust with Brussels, it is only the latest in a series of attacks against American technology groups by Margrethe Vestager, the head of European competition. Two years ago, she ordered Ireland to recover 13 billion euros in taxes from her rival Apple.

Vestager's decision against Google renders illegal the company's business practices that allowed the US group to gain a foothold on 80% of smartphones

Sundar Pichai, Google's chief executive, said Google would appeal against a decision that "rejects the business model that supports Android" and "ignores". . . clear evidence of how people are using their phones today. "

Evidence shows that the vast majority of users simply use what comes with their device and do not download competing applications [19659009] Although Google has not yet decided how to change its business operations in response to the decision, the company is investigating the search for "provisional measures" at the European Court of Justice to avoid "serious harm" "

Such emergency court orders are extremely rare but could, if granted, delay the changes to the business operations required to comply with Ms. Vestager 's decision until the date of the order. that the Google call be heard.

Mr. Pichai told the Financial Times that starting to charge manufacturers using Android was "in s the range of options that are available ".

Ms. Vestager said that Google had for nearly eight years "used Android as a way to cement the dominance of its search engine". His investigation revealed that Google had committed "very serious illegal behavior" that had harmed its rivals and consumers.

Under the ruling, Google will be forced to stop forcing phone makers to pre-install its apps, including Chrome search and web browsers, as a condition of its app's use Google Play store, an "indispensable" feature of Android

M. Pichai rejected the idea that preloading applications was an important factor in the success of Google services. "The areas where they are popular are because they are popular," he said. "The only services that belong to us are loved by users and they search for them."

Google should also stop offering financial incentives to phone manufacturers who preinstall Google's search app exclusively on all their devices. The commission, however, abandoned its original objections to revenue sharing agreements related to specific device models.

Android license manufacturers will also be released from the conditions that prevent them from customizing the operating system by using unapproved "forks" from the operating system on some of their devices. Ms. Vestager concluded that the restriction prevented the more widespread use of the Amazon Android version, called Fire OS.

Google claims that competing applications are only downloaded to one download, which makes it impossible to close competitors even when its applications are preinstalled or bundled on phones. It describes the licensing terms as minimum requirements to ensure that Android runs properly on 24,000 different device types.

The US group also asked why the commission refuses to consider Apple's closed iOS system as a competitor of the iPhone.

million. Pichar warned that the board was undermining the model that Android was allowing it to invest and distribute the software for free. "We are concerned that today's decision will disturb the careful balance we've found with Android, and that it sends a troubling signal in favor of proprietary systems on platforms. open ", he writes in a blog.

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Ms. Vestager said that the commission's investigation had revealed that in 2016, 95% of all search queries were made with the aid of the following: Google search app on preinstalled devices. In contrast, this figure dropped to 25 percent on Windows-based operating devices where Google's search engine was not pre-installed.

"The evidence shows that the vast majority of users simply use what comes with their device and do not download competing applications," Ms. Vestager said.

The fine of 4.3 billion euros is the largest ever issued by Brussels and far exceeds the penalty of 2.4 billion euros that last year was granted to Google to promote its own site.

Thomas Vinje, FairSearch's Lawyer The group that helped launch the case against Google by filing a formal complaint, said the ruling was a "milestone in the discipline of Google's abusive behavior."

"This should mean that Google should stop its anti-competitive practices regarding smartphones, but also in other areas – smart TVs in particular – where it prevents competition by using the same practices," he said. -he declares.

Kenneth Glueck, senior vice president at Oracle, who is a plaintiff in this case, said the decision was "unquestionably a win" for consumers and application developers.

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