Google loses USD 4.7 billion antitrust battle with EU
Luxembourg City, July 2
,: In a jolt to Alphabet's Google, the European Court of Justice has upheld the imposition of a penalty on the tech giant for anticompetitive practices relating to its Android operating system.
The penalty amounting to USD 4.67 billion was trimmed in 2022 by the General Court. The fine was imposed by the European Commission eight years ago in 2018 for exploiting its dominant position in the mobile operating system to block rivals and promote its own apps.
"The Court of Justice dismisses the appeal brought by Google and Alphabet against that judgment of the General Court, thereby confirming the penalty imposed on them, as revised by the General Court, for their anticompetitive practices relating to the Android operating system," the ECJ said.
The European Commission, in its decision, had concluded that the search engine giant, through pre-installation agreements and licencing conditions for certain apps, had promoted its search engine and Google Chrome app on smartphones that run on the Android operating system, which is also run by Google.
In its 2022 verdict, the lower tribunal had confirmed the European Commission's decision that Google imposed unlawful curbs on smartphone makers that used its Android operating system in pursuit of cementing its presence in the search engine market.
The case dates back nearly a decade, when the Commission initiated a procedure on April 15, 2015, against Google on the basis of a clutch of complaints regarding some of its business practices in the mobile internet market.
The Commission found Google in violation of the competition laws by imposing anticompetitive contractual restrictions on smartphone makers that in some cases went as far back as January 1, 2011.
The Commission arrived at three types of restrictions that were imposed by Google. The distribution agreement required smartphone makers to pre-install the Google Search engine and the Chrome app on the devices in order to get a licence from Google for its Play Store. The second one related to anti-fragmentation agreements under which the licences needed for pre-installation of the Google search engine and the Play Store app could only be obtained if the device makers agreed to sell devices running versions of Android approved by Google. The third type of restriction related to the sharing of advertisement revenue with device makers and network operators only if they didn't install any competing search service on a predefined portfolio of devices.
Under the Digital Markets Act, the European regulators have tightened the noose around top tech players for abusing competition laws. Last year, the Commission fined Apple and Meta hundreds of millions of dollars for breaching the Digital Markets Act.
— ANI
Reader Comments
As a student of competition law, this is fascinating. The EU's Digital Markets Act is really changing the game. But will this actually make Android more open for users in developing countries like India? Let's wait and watch.
$4.7 billion is a lot but for Google it's just pocket change. The real question is whether this will stop them from forcing apps like Chrome and Search on users. In my experience, alternative search engines just don't match up.
As an Indian consumer, I can totally relate. When I buy a new Android phone, I'm flooded with Google apps I never asked for. And if I try to use a different browser, it's always a hassle. High time Indian regulators also step up like the EU! 🇮🇳
The EU is really showing the way. But let's be honest - Google's Android is open source, so manufacturers and users have choices. The problem is that alternatives like Firefox or DuckDuckGo just don't have the same reach. Competition needs to be real, not just on paper.
I wonder how this will affect Android's dominance in emerging markets. In India, Android has 95% market share. If the EU forces Google to unbundle apps, it might actually help local app developers get more visibility. Good news for Indian tech startups maybe? 🤔
V We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.