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Google braced for giant Android fine from EU Google hit with 4.3bn euro Android fine from EU
(about 9 hours later)
Google will learn if it faces a record fine over its Android operating system in the coming hours. Google is to be fined a record 4.3 billion euros ($5bn; £3.8bn) over its Android operating system, the BBC has learned.
The European Commission has claimed the US tech giant's mobile device strategy unfairly strengthened its dominance of search. The European Commission's action followed a three year probe into claims the firm's mobile device strategy had unfairly strengthened its dominance of search.
The regulator can fine the firm up to 10% of its annual revenue - which amounts to $11.1bn (£8.5bn). The penalty is set to be confirmed at a press conference in Brussels later.
It could also force Google to unbundle Android from its Chrome browser and other services. It will be the largest fine imposed by the regulator against a single firm.
Competition Commissioner Margrethe Vestager has previously ordered the firm to pay a 2.4bn euro ($2.8bn; £2.1bn) fine over its shopping comparison service - a ruling Google is in the process of appealing against. However, Google may challenge the ruling.
In addition, her investigators are probing the practices of its advert-placing business AdSense as part of a separate inquiry. Competition Commissioner Margrethe Vestager previously fined Google 2.4bn euros ($2.8bn; £2.1bn ) over a separate probe into its shopping comparison service - a ruling Google is in the process of appealing against.
The Android ruling was originally expected earlier this month, but Reuters reported that it had been postponed to avoid a clash with President Trump's visit to Europe. In addition, her team has a third investigation underway into the firm's advert-placing business AdSense.
Market leaderMarket leader
The European Commission first began scrutinising Android in April 2015, following a complaint by Fairsearch - a trade group that originally included Microsoft, Nokia and Oracle among its members.The European Commission first began scrutinising Android in April 2015, following a complaint by Fairsearch - a trade group that originally included Microsoft, Nokia and Oracle among its members.
At that point, Android had a 64% share of Europe's handset market, according to research firm Statcounter. It has since grown to 74%.At that point, Android had a 64% share of Europe's handset market, according to research firm Statcounter. It has since grown to 74%.
The commission subsequently made three specific allegations of anti-competitive behaviour, saying Google was:The commission subsequently made three specific allegations of anti-competitive behaviour, saying Google was:
In response, Google denied obliging device-makers to preload any of its apps. In response, Google had denied obliging device-makers to preload any of its apps.
It also claimed that distributing Google Search and the Play store together had made it possible to offer its services for free. It had also claimed that distributing Google Search and the Play store together had made it possible to offer its services for free.
"The commission's approach... would mean less innovation, less choice, less competition, and higher prices," its global affairs chief blogged. "The commission's approach... would mean less innovation, less choice, less competition, and higher prices," its global affairs chief blogged in 2016.
He added that in any case, Apple and its rival iOS operating system gave consumers an alternative.He added that in any case, Apple and its rival iOS operating system gave consumers an alternative.
For its part, Fairsearch wants the regulator to look to the future.
"The anti-competitive harm is likely to go far beyond smart mobile devices," said spokesman David Lawskey.
"As connectivity is added to substantially all innovative devices, the list of potentially affected devices, such as smart TVs and connected devices will only grow.
"The European Commission's remedy should anticipate these consequences and fully address them."
Russia's push-backRussia's push-back
Google has already made concessions in Russia, where the local competition regulator pursued similar complaints.Google has already made concessions in Russia, where the local competition regulator pursued similar complaints.
There, Android users are now offered a choice between Google, Yandex and Mail.ru as the default search engine the first time they use the Chrome browser.There, Android users are now offered a choice between Google, Yandex and Mail.ru as the default search engine the first time they use the Chrome browser.
Yandex has seen its share of mobile search rise from about 34% to 46% since the change, according to Statcounter.Yandex has seen its share of mobile search rise from about 34% to 46% since the change, according to Statcounter.
But one legal expert said the EU's dispute could take much longer to resolve.But one legal expert said the EU's dispute could take much longer to resolve.
"Google can challenge any decision made against it, and has shown in the past that it is prepared to assert its legal rights," Suzanne Rab, a barrister at Serle Court Chambers, told the BBC. "Google has shown in the past that it is prepared to assert its legal rights," Suzanne Rab, a barrister at Serle Court Chambers, told the BBC.
"It can appeal to the EU courts, and as we've seen in the European Commission's abuse of dominance case against Intel, such litigation can be measured in years and not months. "It can appeal to the EU courts, and as we've seen in the European Commission's abuse of dominance case against Intel, such litigation can be measured in years and not months."
"And rivals that do not believe that the outcome goes far enough in terms of remedies could also make challenges of their own."