Trump on EU's $5B fine against Google: 'I told you so!'

21 July, 2018, 18:59 | Author: Rodolfo Hawkins
  • Donald Trump

Google said it would be appealing against the fine imposed by EU. Google intends to appeal this decision, he said.

Google vowed to appeal the decision, saying it "rejects the business model that supports Android".

According to the EU, Google's illegal behavior 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 EU took issue with Google's payments to wireless carriers and phone makers to exclusively pre-install the Google Search app.

EU Competition Commissioner Margrethe Vestager said concerns about restricting competition "wasn't just a remote possibility from theory books".

The fine, which had been widely expected this week, is 4.34 billion euros, or about $5 billion. Last year, it imposed a then-record -2.4 billion ($2.8 billion) fine on the company for using its search engine to unfairly steer consumers to its own shopping platform.

US President Donald Trump tweeted that the EU's record $US5 billion fine of Google was a sign the bloc had "taken advantage of the U.S".

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Past year eMarketer forecast almost $50billion would be made by Google in 2017 from mobile ad revenue. The company understood early on that the shift from desktop PCs to mobile internet, which started in the mid-2000s, would be a fundamental change for Google Search.

"The important thing is not to be distracted by the size of the fine". And if Google does not change its practices, the penalty will keep on increasing. The openly accessible Android source code covers basic features of a smart mobile operating system but not Google's proprietary Android apps and services. Apple is more effective at keeping competitors out: Its Safari browser holds nearly the same market share as its iOS operating system.

Google argues that could hurt its ability to provide Android for free, as its main way of making money from the operating system is through advertising and the sale of content and apps. The company also prevented manufacturers from selling devices running on alternative versions of its Android operating system. When setting up a new phone, users should see a list of browser apps, with ratings from users and independent reviewers, along with a list of email applications and mapping and navigation apps.

"The reality is that as long as they're delivering great utility to their consumers, consumers will still use those platforms".

Google didn't immediately respond to a request for comment. European regulators had already been working on tougher privacy regulation and in May enforced new rules that are influencing the way some companies operate outside of the region as well. Trump slapped tariffs on steel and aluminium imported from the European Union, and is considering extending these to include imported cars.

Lobbying group FairSearch, whose 2013 complaint triggered the European Union investigation, welcomed the ruling, saying it could help restore competition in mobile operating systems and apps.



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