LONDON – Search Engine Google will be hit with a record European Union (EU)fine for using its Android smartphone system to fortify its search empire.The fine likely to be handed down on Tuesday or Wednesday is expected toeclipse the 2.1 bn pound monopoly abuse penalty Google paid last year overits internet shopping business, and escalates the war between SiliconValley and Brussels, The Telegraph reported on Saturday.
The European Commission’s competition chief Margrethe Vestager has beeninvestigating Google for three years over complaints the company illegallyforces smartphone manufacturers to install its apps. It gives its Androidsoftware to phone manufacturers for free, but binds them to “exclusivityagreements” that force them to install Google’s web browser and searchengine if they use the Google Play app store, the report said.Play Video1m 15s
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Opponents claim that this constitutes abuse of Android’s 74 per cent shareof the European smartphone market and harms rival search engines andbrowsers. Meanwhile, Google insists the agreements allow Android to remainfree to manufacturers and help them compete against Apple.
The commission has the power to fine Google up to 10 per cent of itsparent company Alphabet’s annual turnover, or 9.5 bn euro (8.4 bn pound).
Although it is not expected to use the full extent of its powers, the fineis likely to be higher than the 2.4 bn euros Google was ordered to pay inJune last year over claims it stuffed search results with its own shoppingadverts, squeezing out price comparison services. As well as the fine,Google is set to be ordered to break its agreements with phonemanufacturers. This could mean more Android phones being sold withoutGoogle software installed, potentially boosting rival search engines andweb browsers such as Microsoft’s Bing or Firefox.