UPDATED 13:44 EDT / OCTOBER 03 2016

NEWS

Google could face major fines over Android antitrust case in Europe

Google Inc. parent company Alphabet Inc. could be in serious trouble in the European Union.

EU regulators have said that they plan to order the company to cease offering financial incentives to Android phone makers who exclusively pre-install Google Search or Play Store on their devices. If Google does not comply, the company could face a hefty fine for violating EU antitrust laws.

According to Reuters, the European Commission sent Google a 150-page document in April that outlined its complaints against the company’s alleged anti-competitive practices. The commission accused Google of using Android’s dominant position in the smartphone marketplace to shut out competition. Reuters noted that the document tells Google that it “cannot punish or threaten” companies that do not agree to its terms.

The EU regulatory commission has not revealed the exact number for how much it could potentially fine Google, but it said that the amount will be set “at a level which will be sufficient to ensure deterrence.” With the astronomical funds at Google’s disposal, that fine would need to be high indeed to make a dent in the company’s plans.

Google has issued a statement in response to the commission’s plans that denies the antitrust accusation. “We look forward to showing the European Commission that we’ve designed the Android model in a way that’s good for both competition and consumers, and supports innovation across the region,” the company said in its statement.

According to the document obtained by Reuters, Google has until the end of the month to respond to the European Commission’s complaints.

EU vs. Google: Again?

Google has had its share of legal struggles in the EU for some time, and this is not the only antitrust accusation the company has received this year. Less than three months ago, the EU added new charges to its case against Google regarding the practices of its AdSense platform. Specifically, the European Commission took issue with exclusivity requirements for AdSense users, along with requirements that a minimum number Google search ads receive premium placement on websites.

“Google has come up with many innovative products that have made a difference to our lives,” Margrethe Vestager, the European commissioner for competition, said in the statement at the time. “But that doesn’t give Google the right to deny other companies the chance to compete and innovate.”

Vestager said the EU will consider Google’s arguments before deciding how to take both cases forward. “But if our investigations conclude that Google has broken EU antitrust rules, the Commission has a duty to act to protect European consumers and fair competition on European markets,” she said.

Photo by leonyaakov 

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