Alphabet Inc has cash reserves of $102.9 billion, and €4.34 billion - despite being a large sum of money - represents just over two weeks' revenue.

Such practices amount to Google illegally limiting the user's and manufacturer's choice and abusing its dominant position at a time when mobile use was growing rapidly. These practices have denied rivals the chance to innovate and compete on the merits. "They have denied European consumers the benefits of effective competition in the important mobile sphere", EU antitrust chief Margrethe Vestager's boss, Commission President Jean-Claude Juncker said.

Google faces $5 billion fine over Android - report
Google hit with reported record $5 billion EU fine over Android antitrust practices

Google CEO Sundar Pichai addressed the decision against Android in a blog post, noting that the commission's decision "ignores the new breadth of choice and clear evidence about how people use their phones today".

Pichai asserts that the EC failed to consider that Android does have at least one major competitor in the mobile market: Apple's iOS. Competition authorities have said Google prevented third parties using its product from displaying search advertisements from Google's competitors.

More significant than a blockbuster fine could be an accompanying order freeing up phone manufacturers to choose non-Google apps to install on Android phones.


Google has already issued a statement against this fine from the EU.

Google has built a massive business of banner and videos ads, thanks largely to its central role on Android devices. That would be equivalent to roughly $300 million per day based on 2017's totals, so if the appeal fails, Google will need to pay up or face the possibility of serious damage to its bottom line.

According to the EU, Google's illegal behaviour dates back to 2011 and includes forcing manufacturers to pre-install Google Search and its Chrome browser together with its Google Play app store on their Android devices, paying them to pre-install only Google Search and blocking them from using rival Android systems.


The European Commission exceeds last year's then-record 2.4 billion-euro penalty following an investigation into Google's shopping-search service. "But we are concerned that today's decision will upset the careful balance that we have struck with Android, and that it sends a troubling signal in favour of proprietary systems over open platforms".

European Commission President Jean-Claude Juncker is due to meet U.S. President Donald Trump at the White House next Wednesday in an effort to avert Mr Trump's threatened new tariffs on cars made in the European Union as the president looks to reduce the United States trade deficit. Plus, it is extremely easy to remove a pre-installed app in the OS and replace it with an alternative from the Play Store.


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