Google has just been fined R67 billion - and it will also have to pay R200 million a day until it sorts out Android
- Google has been fined €4.3 billion (R67 billion) by the EU antitrust watchdog over its Android monopoly. But the EU isn't done yet.
- Google has 90 days to get its house in order. If it doesn't, it will be fined up to 5% of its daily revenue for each day it fails to comply with EU laws.
- That means it could be fined as much as R200 million a day, on top of the R67 billion penalty.
Google may have just been fined €4.3 billion (R67 billion), but there's plenty more pain to come unless it gets its house in order.
That's the message from the European Commission, which punished Google on Wednesday for breaking EU antitrust laws by abusing the dominance of Android. The Commission identified three key transgressions, which prompted the massive fine:
- Requiring mobile device manufacturers to preinstall Google's browser and search apps for access to the Play store.
- Paying manufacturers to exclusively preinstall Google Search.
- Preventing manufacturers from selling devices running alternative versions of Android.
The Commission said if these issues are not put right within 90 days, Google will be fined up to 5% of the global daily revenue of its parent company Alphabet.
Alphabet's total annual revenue stood at $110.9 billion last year, which evens out at a daily average of approximately $304 million. That means Google could be stung with penalties of as much as $15.2 million (R200 million) a day, on top of its existing R67 billion fine.
Google said it intends to appeal Wednesday's ruling, but a Commission spokesperson told Business Insider that this would not automatically affect the 90 day period or any non-compliance penalties levied thereafter. Although, of course, if Google theoretically won an appeal against Wednesday's decision, it might be possible to have subsequent fines reversed.
The Commission has imposed this style of daily fine before. In 2008, it levied a €899 million combined penalty on Microsoft for failing to comply with a decision filed in 2004, which found it had abused its dominant position to demand unreasonably high prices for interoperability information.
A Google spokesperson said: "Android has created more choice for everyone, not less. A vibrant ecosystem, rapid innovation, and lower prices are classic hallmarks of robust competition. We will appeal the Commission’s decision."
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