Google has been fined a record breaking $5B by European Commission

As we reported yesterday, the European Commission has fined Google €4.34 billion for now following EU antitrust rules. According to EC, Google has imposed illegal restrictions on Android OEMs and mobile network operators to maintain its dominant position in search and other services. Google must now change its policies within 90 days or face penalty payments of up to 5% of the average daily worldwide turnover of Google.

Google was fined because of the following:

• has required manufacturers to pre-install the Google Search app and browser app (Chrome), as a condition for licensing Google’s app store (the Play Store);
• made payments to certain large manufacturers and mobile network operators on condition that they exclusively pre-installed the Google Search app on their devices; and
• has prevented manufacturers wishing to pre-install Google apps from selling even a single smart mobile device running on alternative versions of Android that were not approved by Google (so-called “Android forks”).

“Today, mobile internet makes up more than half of global internet traffic. It has changed the lives of millions of Europeans. Our case is about three types of restrictions that Google has imposed on Android device manufacturers and network operators to ensure that traffic on Android devices goes to the Google search engine. In this way, Google has used Android as a vehicle to cement the dominance of its search engine. These practices have denied rivals the chance to innovate and compete on the merits. They have denied European consumers the benefits of effective competition in the important mobile sphere. This is illegal under EU antitrust rules,” said Commissioner Margrethe Vestager.

You can read EC’s full press release here.