Google Faces Record RM20.3 Billion Fine Over Android OS Monopoly

Google is facing a record 4.3 billion-euro (RM20.3 billion) antitrust fine from the European Union. To prevent this, the company will have to change the way it puts search and web-browser apps onto Android mobile devices.

Furthermore, Google has a 90 day period, until mid-October to stop what the EU calls “illegal practices” whereby it pushes its services in front of users. This claim refers to how handset manufacturers are forced to pre-install Google Search and Chrome on their device.

Apart from making Google a default search engine, manufacturers must integrate Google’s own apps into the phone. Not doing so leads to them not being able to offer the Google Play Store service. The company faces daily fines of 5% of its revenue if it doesn’t change this practice.

For perspective, Google’s parent company Alphabet Inc. generates the same amount of money every two weeks, according to its 2017 annual revenue of $110.9 billion.

Google Chief Executive Officer Sundar Pichai took online to argue against this decision. He states that Android has created more choices for everyone, rather than less. He adds that the company only earns revenue if Google’s apps are installed and if people choose those apps over rival apps.

Despite arguments that Android is in competition with Apple’s iOS, EU regulators point out that Apple’s software can’t be licensed by handset makers. Apple’s iPhones are also often priced outside of many Android users’ purchasing power, rendering this point moot.

(Source: Bloomberg)

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