Tuesday October 23, 2018
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EU Prepares to hit Google with Record Fine in Android Monopoly Case

As well as the fine, Google is set to be ordered to break its agreements with phone manufacturers

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Now pre-order Google's 'Pixel' smartphones on Airtel Online Store. Pixabay
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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 to eclipse the 2.1 bn pound monopoly abuse penalty Google paid last year over its internet shopping business, and escalates the war between Silicon Valley and Brussels, The Telegraph reported on Saturday.

The European Commission’s competition chief Margrethe Vestager has been investigating Google for three years over complaints the company illegally forces smartphone manufacturers to install its apps.

It gives its Android software to phone manufacturers for free, but binds them to “exclusivity agreements” that force them to install Google’s web browser and search engine if they use the Google Play app store, the report said.

The commission has the power to fine Google up to 10 per cent of its parent company Alphabet's annual turnover, or 9.5 bn euro (8.4 bn pound)
The commission has the power to fine Google up to 10 per cent of its parent company Alphabet’s annual turnover, or 9.5 bn euro (8.4 bn pound). Pixabay

Opponents claim that this constitutes abuse of Android’s 74 per cent share of the European smartphone market and harms rival search engines and browsers.

Meanwhile, Google insists the agreements allow Android to remain free to manufacturers and help them compete against Apple.

The commission has the power to fine Google up to 10 per cent of its parent company Alphabet’s annual turnover, or 9.5 bn euro (8.4 bn pound).

Also Read: Google Rolls Out ‘Morse Code’ Support on Gboard for iOS

Although it is not expected to use the full extent of its powers, the fine is likely to be higher than the 2.4 bn euros Google was ordered to pay in June last year over claims it stuffed search results with its own shopping adverts, squeezing out price comparison services.

As well as the fine, Google is set to be ordered to break its agreements with phone manufacturers. This could mean more Android phones being sold without Google software installed, potentially boosting rival search engines and web browsers such as Microsoft’s Bing or Firefox. (IANS)

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Tech Giant Google To Charge $40 Per Device From Android Makers

While Android will remain free and open source, Google will offer separate licenses to the Google Search app and to Chrome

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Google to charge $40 per device to Android makers. Wikimedia Commons

Android manufacturers will have to pay $40 per device to Google in Europe to be featured into Google Play Store and other mobile apps.

According to a report in The Verge on Friday, a confidential fee schedule shows costs as high as $40 per device to install the “Google Mobile Services” suite of apps.

“The new fees vary depending on country and device type, and it would apply to devices activated on or after February 1st, 2019,” the report said.

“Google is also offering separate agreements to cover some or all of the licensing costs for companies that choose to install Chrome and Google search on their devices as well, according to a person familiar with the terms,” it added.

The tech giant however, has declined to comment.

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A Google logo is seen at the company’s headquarters in Mountain View, California, VOA

Earlier this week, Google said it was updating the compatibility agreements with mobile device makers and may ask them to pay a fee for Google Play and other its other Android apps used in Europe.

The move was to comply with the decision of the European Union’s anti-trust watchdog’s decision against Android.

The European Commission ruled that forcing device manufacturers to pre-install Google Search and Chrome was against its competition rules and fined the tech giant a whopping $5.1 billion in July (Google has appealed against the ruling).

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With the new changes to Android that will come into effect on October 29, smartphone makers in Europe will need to pay for certain Google apps.

While Android will remain free and open source, Google will offer separate licenses to the Google Search app and to Chrome. (IANS)