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D The European Commission imposed its highest fine ever recorded on Google. Because the Internet company has abused its Android monopoly and forced smart phone manufacturers to illegal gagging contracts, the US parent company Alphabet must pay 4.34 billion euros in penalties to the conviction of the European guardian Margrethe Vestager
appeal to the guardian of the competition. The Group has been accused of forcing Android smartphone manufacturers and mobile network operators since 2011 to illegally require the installation of certain Google apps prior to delivery, if they wanted to get the license for the essential Play Store.
Without this app store, a smartphone is as good as can not be sold, no user wants to go through it. In part, Google would also through direct payments to major manufacturers and mobile operators, Google's commitment exclusively as the default search engine on smartphones.
Opposed Alternatives
The main allegation: Google hampered by this approach that there are fewer innovations. The Android mobile operating system is now installed on about 87 percent of all new smartphones. Except Android, Apple's only iOS has a noticeable broadcast.
Such a market position imposes a special responsibility, and competitors should not be thwarted by unfair measures, said Vestager. Google has not lived up to this responsibility.
Within 90 days, the business now needs to change business model and change practice and contracts with smartphone manufacturers. If Google does not meet this deadline threatens beyond the one billion daily penalty penalty, which could account for up to five percent of the global average daily business turnover of the alphabet. Violation of EU competition rules by Google was the biggest of all, but the Danish commissioner for competition did not want to shoot. Without a doubt, Google was guilty of "very serious illegal behavior".
But the amount of punishment is calculated from various factors, The determining factors are, inter alia , the duration of the offense and the business turnover of the defendant company. "These numbers we enter into a matrix and a puff: then comes out a punishment."
"Android has created more choice, not less," wrote the boss of Google Sundar Pichai in a blog post. Vestager and its competitors are wrong, Android as open software has significantly boosted the market for mobile devices. Thanks to Android, there is more to the consumer than ever before.
In addition, consumers could even download alternative applications to Google software. On average, each user would install more than 50 different applications. On the charge of Vestager, Google would cement through Android its supremacy in the market of mobile Internet search, Pichai was not part of it.
Publishers associations react positively
In their first reactions, associations and representatives of European Internet companies welcomed Vestager's slogan. "Google manipulates the system so that its applications, not necessarily the best applications for consumer needs, are given to users," commented Michael Weber of ICOMP, the Google lobbying organization. "The penalty will not hurt Google financially, but we hope Google's business practices change."
The German Association of German Newspaper Publishers (BDZV) and the German Association of Magazine Publishers (VDZ) also made positive comments. "This decision by European Commissioner Vestager shows that the dominant digital platforms are increasingly jeopardizing competition and diversity in Europe," said a joint statement. Non-discriminatory access to such platforms is essential for fair competition and diversity in Europe.
"The neutrality of infrastructure platforms," said Jan Oetjen, Chairman of the Board of Trustees from the netID european foundation and general manager of internet portals United Web.de and GMX.
"The verdict is a historic step in maintaining this neutrality," Oetjen said. At the same time, the industry European Internet should now be challenged to oppose Google's open standards.
One may wonder how Google will react to the European Commission's decision, even though the Group is acting legally against the verdict, it has no suspensive effect.According to observers, it would be conceivable that Google gives up its previous practice and provide a fee to Android.This could possibly increase the price of smartphones.
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