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Google Fined Over $5 Billion in Smartphone Search Investigation

Google has been fined €4.34 billion ($5.06 billion) by the European Commission, which alleges that the company used its Android smartphone operating system to ensure that its search engine remained ahead of its competitors.

Competition commissioner Margrethe Vestager said that the company has forged “improper agreements” with smartphone manufacturers, preventing them from using competing search platforms. The ruling states that Google must change its business practices within 90 days or be forced to pay up to 5% of its average global daily turnover in penalties.

M FEJMZ0 400x400Google says it will appeal the ruling. In an online post following the announcement, chief executive Sundar Pichai wrote:

“Rapid innovation, wide choice, and falling prices are classic hallmarks of robust competition and Android has enabled all of them. Today’s decision rejects the business model that supports Android, which has created more choice for everyone, not less”.

Google is also appealing a fine it received following an additional investigation into its shopping search feature, while a separate investigation into its AdSense targeted advertising programme is currently underway.