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| Google hit with 4.3bn euro Android fine from EU | Google hit with 4.3bn euro Android fine from EU |
| (about 1 hour later) | |
| Google has been fined a record 4.34 billion euros ($5bn; £3.9bn) over Android. | |
| The European Commission said the firm had used the mobile operating system to illegally "cement its dominant position in general internet search". | |
| The firm's parent Alphabet has been given 90 days to change its business practices or face further penalties of up to 5% of its average daily turnover. | |
| It represents the largest fine imposed by the regulator against a single firm. | |
| Google's chief executive Sundar Pichai was pre-briefed about the decision by Competition Commissioner Margrethe Vestager on Tuesday. | |
| In a statement she said Google had "denied European consumers the benefits of effective competition in the important mobile sphere." | |
| Google's parent Alphabet can easily afford the fine- its cash reserves totalled nearly $103bn at the end of March. | |
| However, the California-based company may decide to challenge the ruling. | |
| Ms Vestager previously fined Google 2.4bn euros ($2.8bn; £2.1bn ) over a separate probe into its shopping comparison service - a ruling the tech firm is in the process of appealing against. | |
| In addition, her team has a third investigation underway into Google's advert-placing business AdSense. | |
| Market leader | Market 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 had 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 had 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 in 2016. | "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. |
| Russia's push-back | Russia'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 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." |
| Previous penalties | |
| The European Commission had the power to fine Google up to 10% of its annual revenue. Based on its last annual report, that would have amounted to $11.1bn (£8.5bn). | |
| The 4.3bn euro figure is, however, a record-sized sum for the commission. | |
| Earlier punishments include: |