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.
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).
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)
Google CEO Sundar Pichai insisted Tuesday before the House Judiciary Committee that he runs the U.S. technology giant without political preference.
“We find that we have a wide variety of sources, including sources from the left and sources from the right. And we are committed to making sure there are diverse perspectives,” Pichai told the panel.
Pichai defended the company after accusations from Republican lawmakers that Google has developed online search algorithms to suppress conservative voices.
“There are numerous allegations in the news that Google employees have thought about doing this, talked about doing this and have done it,” Republican committee chairman Robert Goodlatte said.
Republican Congressman Lamar Smith cited a study by P.J. Media that concluded 96 percent of Google’s search results for President Donald Trump were from “liberal media outlets.”
“In fact, not a single right-leaning site appeared on the first page of search results. This doesn’t happen by accident but is baked into the algorithms. Those who write the algorithms get the results they must want and apparently management allows it.”
Smith also cited a study by “Harvard-trained psychologist” Robert Epstein that said Google’s alleged bias “likely swung” more than 2.5 million votes to Democratic presidential candidate Hillary Clinton in the 2016 election.
“Google could well elect the next president with dire implications for our democracy,” Smith added.
“I lead this company without political bias and work to ensure that our products continue to operate that way,” Pichai said. “To do otherwise would go against our core principles and our business interests.”
Top committee Democrat Jerry Nadler said Republican accusations of bias is “a completely illegitimate issue, which is the fantasy dreamed up by some conservatives that Google and other online platforms have an anti-conservative bias. As I’ve said repeatedly, no credible evidence supports this right-wing conspiracy theory.”
President Donald Trump is among those who have accused the company of censoring conservative content, tweeting in August that Google is “RIGGED” and that “Republican/Conservative & Fair Media is shut out.”
Pichai’s testimony came after he angered committee members in September by declining an invitation to testify about manipulation of online services by foreign governments to influence U.S. elections.
The CEO was also questioned about the company’s planned “Dragonfly” project, a censored search engine for China and “next generation technology” that Congressman Smith said Google is “developing on Chinese soil.”
“This news raises a troubling possibility, that Google is being used to strengthen China’s system of surveillance, repression and control,” Smith said. “We need to know that Google is on the side of the free world, and that it will provide its services free of anti-competitive behavior, political bias and censorship.”
An international group of 60 human rights and media groups submitted a letter Tuesday to Pichai, calling on him to abandon the project, warning that personal data would not be safe from Chinese authorities.