Google risked the biggest fine in its history, courtesy of the European Commission, as we have come to know here. At the time we talked about 2.4 billion euros. The final figure "stands" at 4.34 billion euros, thus surpassing all estimates.
At issue is the violation of competition rules. According to the European Commission, US technology was unlawfully limiting manufacturers from using competitive services. Take for example Apptoide, UK’s application store.
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The conviction comes in hard, reflecting years of hearings and investigations into Google. Something that also shows us that the European Commission has no light hand. Especially as regards the protection of fundamental freedoms such as the free competition market.
And if the 4.34 billion euros might seem like astronomical value, even for a company as big as Google, the value could get worse. In fact, the fine could go up if Google doesn't start and apply changes within 3 months.
European Commission imposes historic fine on Google
Indeed, after 90 days, if the European Commission sees no satisfactory changes, the fine will rise to 5% of Google's daily revenues. That is, if US technology does not quiet the concerns of the suprastate organ, the task will be even heavier. Being able to make even more dent in the daily income of the largest search engine and responsible for the Android operating system.
Could Apple suffer the same fate as Google? No, far from it. The European Commission clarifies that Cupertino's technology does not make its software available to other manufacturers, such as rival Mountain View.
It is exactly in this software licensing that lies the rub of the issue. According to the supranational body, US technology imposes restrictive conditions. Something that prevents manufacturers (OEMs) from opting for services from rival companies.
By way of example we have:
- OEM's requirement to pre-install Google Search and Chrome browser
- OEM payments for ONLY having Google search engine preinstalled
- Do not allow OEMs to sell terminals with unapproved versions of the Android operating system.
In conclusion, this heavy value will also serve as a detractor example for other companies. In theory, something that will discourage other entities from pursuing similar policies.
In short, the Mountain View tech will be punished to serve as an example to many others. However, the US company has issued a statement promising to appeal the decision.
Let's wait to see what the outcome of this case will be.
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