Google could face European Union fine over Android Competitive Practices

Google could face European Union fine over Android Competitive Practices

Google could face fine from European Union as the authorities in Europe plan to order Alphabet to stop offering financial incentives to hardware companies to preinstall Google Search on devices. The investigation is ongoing and EU authorities could slap Google with a massive fine for competitive practices on its Android mobile operating system. Android is the most installed operating system for smartphones and Google currently pushes many of its apps as default on new handsets.

However, Google is prepared to challenge European Union on the issue. Google claims that the company doesn’t abuse its dominance in mobile operating system segment. Google asked the EU authorities to extend deadline for responding to charges. As per report published by Telegraph, Google could provide its reply for the charges within two weeks.

European Union wants to stop Google from paying smartphone manufacturers to pre-install its apps on new smartphones. Google could also face a massive fine which could be linked to its search advertising revenue, as per media reports.

The current report has been published by Reuters claiming that the company could face serious fine for the long-pending investigation by European authorities. The document added that the fine in this case could be massive enough to ensure deterrence in future.

European Commission spokesman Ricardo Cardoso has not commented on Reuters report on the issue. The European Union document accessed by Reuters has close to 150 pages, detailing the charges against search engine major. Google also faces another charge regarding favoring its own shopping app instead of rival services. The investigation by European Union started in January 2011.

Responding to charges, Google said, “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.”

Google has been facing inquiries in many European countries on many issues. The company has complied with most of the requirements of European Union.

The report added, “The regulators also want to prevent Google from forcing smartphone makers to pre-install its proprietary apps if this restricts their ability to use competing operating systems based on Android.”

U.S. companies operating in the European Union have been facing tough times as European Union authorities have been investigating tax issues and issues related to fair playing field for technology companies and their competitors. Recently, Apple was slapped with a massive tax charge by the European Union.


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