Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 11 pages
Data source: Published sources
Abstract
In July 2018, the European Union (EU) imposed a hefty fine of around USD5 billion (EUR4.34 billion) on Google Inc, for unlawfully using its popular Operating System, Android to strengthen the supremacy of its search engine. According to EU, since 2011, Google was imposing illegal anti-competitive restrictions on mobile network operators as well as device manufacturers across the world. This strategy had helped Google to cement its leading position in internet search by diverting all the traffic from the Android devices to its search engine platform. The EU commission criticised that these practices paved way for creating an unfair competition between the rival services and the company's own comparison shopping service. The Commission also accused Google for misusing its powerful position to restrict competition in various markets. Though Google's competitors had hailed this move, tech analysts feared that the largest ever antitrust fine by EU imposed on Google might affect the Android Ecosystem. Besides, the move could provide an opportunity to the mobile manufacturers and mobile carriers to extract money from Google and its rivals for pre-installing their apps. Sundar Pichai, Chief Executive of Google further warned that the company might impose a restriction on the use of Android as a free platform or might adopt a tightly controlled distribution model like Apple Inc. Besides, a group of tech experts supported Google and highlighted that Android was responsible for bringing more variety, competition as well as innovation to the market. Amidst this backdrop, would EU's fine on Google prove to be a deterrent and compel the internet giant to take a tough stand on its Android business model? Had EU set a precedent for other countries to trigger more anti-trust attacks on Google?
About
Abstract
In July 2018, the European Union (EU) imposed a hefty fine of around USD5 billion (EUR4.34 billion) on Google Inc, for unlawfully using its popular Operating System, Android to strengthen the supremacy of its search engine. According to EU, since 2011, Google was imposing illegal anti-competitive restrictions on mobile network operators as well as device manufacturers across the world. This strategy had helped Google to cement its leading position in internet search by diverting all the traffic from the Android devices to its search engine platform. The EU commission criticised that these practices paved way for creating an unfair competition between the rival services and the company's own comparison shopping service. The Commission also accused Google for misusing its powerful position to restrict competition in various markets. Though Google's competitors had hailed this move, tech analysts feared that the largest ever antitrust fine by EU imposed on Google might affect the Android Ecosystem. Besides, the move could provide an opportunity to the mobile manufacturers and mobile carriers to extract money from Google and its rivals for pre-installing their apps. Sundar Pichai, Chief Executive of Google further warned that the company might impose a restriction on the use of Android as a free platform or might adopt a tightly controlled distribution model like Apple Inc. Besides, a group of tech experts supported Google and highlighted that Android was responsible for bringing more variety, competition as well as innovation to the market. Amidst this backdrop, would EU's fine on Google prove to be a deterrent and compel the internet giant to take a tough stand on its Android business model? Had EU set a precedent for other countries to trigger more anti-trust attacks on Google?