The EU has fined Google $5 Billion for violating the antitrust rules, by forcing manufacturers of Android phones to Install the Chrome browser and Google Search app.
What's more, the company has 90 days to put an end to its illegal conduct or face penalty payments of up to 5% of the average daily worldwide turnover of Google's parent company, Alphabet. With the company able to make its ads show up in more smartphone apps than any other tech rival, Google's app network has quietly become a huge growth engine.
"If the U.S. would impose these vehicle tariffs that would be very unfortunate but we are preparing together with our member states a list of rebalancing measures as well", European Union trade chief Cecilia Malmstrom said on Thursday.
It's remained mostly shrouded in mystery since then, but a new report from Bloomberg claims that Fuchsia will be an all-encompassing operating system reaching across Google's entire family of hardware - including smart home devices. That makes it hard for competitors to Google's search engine and Chrome browser to compete on their merits, she said.
"This is an important step in disciplining Google's abusive behaviour in relation to Android", said spokesman Thomas Vinje.
The penalty is almost double the previous record of 2.4 billion euros which the US tech company was ordered to pay past year over its online shopping search service.
Google immediately said it will appeal.
In addition, her team has a third investigation underway into Google's advert-placing business AdSense.
Margrethe Vestager, the Competition Commissioner for the European Union, stated the huge fine would force Google to change its ways, increasing the chances of competition search apps and browsers to be downloaded.
However, Google can still require the use of its apps to allow the proper running of android devices bit without limiting the manufacturers' liberty to create devices that feature android forks. Vestager has to concentrate on areas where she's on the most solid ground, and going for major behaviour changes in an entire industry probably would be too ambitious.
What does the regulator want Google to do now?
Tremosa argues that Google's dominance has obscured the original goal of its search engine: to display most relevant choices. With this development, Google will be under strong scrutiny of most regulators. "They could these users to try their own services before they get completely hooked on Google". This is done by linking certain words in irrelevant web sites to artificially increase the words' ranking by Google.
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