Google Said to Face Antitrust Fines on Android Within Weeks

Google Said to Face Antitrust Fines on Android Within Weeks

Google faces fines for hindering competition with its Android mobile phone system as European Union antitrust watchdogs get ready to add to last year’s record 2.4 billion-euro penalty against the U.S. tech giant, according to Bloomberg.

The EU is in the final stages of the Android probe and could issue a fine as soon as July, according to the people, who spoke on condition of anonymity. The Alphabet unit also risks potential penalties in two other cases, they said.

The Android investigation targets Google’s strategy on mobile devices that sees Google Search pre-installed or set as the default on most Android phones and tablets sold in Europe. The practices may shut out rival search engines and harm consumers by stifling innovation, the EU said in 2016. Getting the EU’s three Google investigations to the finish line is Margrethe Vestager’s main task as competition commissioner before she’s due to move in late 2019.

The EU probe into the way Google links its apps to the Android mobile-phone software questions how internet firms give away services in return for data that aids advertising sales. An EU order could demand Google stop packaging its apps, including search, the Gmail email service and maps, with Android, which risks undermining how Google operates in other areas.

Investigators have been pushing hard on the Android and Google shopping cases in recent months. They’ve sought extra evidence to bolster their arguments on Android, advancing so much from the 2016 complaint they sent Google that the company sought an oral hearing to defend itself, three people said. The EU refused the request as a hearing is usually only allowed immediately after a complaint is sent.

Fines for Android may also be substantial if the EU were to base its calculations on Google’s mobile advertising revenue, a figure it doesn’t break out from its total ad sales. But Google may receive some comfort that it may escape an extra penalty that lifts fines by 50 percent for failing to learn past lessons. The Financial Times reported Wednesday that Google may be fined in July in the Android case.