Google's European $5 billion fine raises pressure on U.S. regulators to examine the company's business practices

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European Union Competition Commissioner Margrethe Vestager
A John Thys/AFP/Getty Images image

– News from elsewhere covered by Quincy Quarry News with commentary added.

 

Google’s European $5 billion fine raises pressure on U.S. regulators to examine the company’s business practices.

 

Google was fined $5 billion by the European Union today and ordered to change the way it puts search and web browser apps on Android mobile devices, setting a global record for antitrust penalties.

 

Busted for five large
A State of Digital image

So much – it would appear – for Google’s motto: “Don’t be evil”

 

Google’s woes are no longer limited to Europe.

 

The tech giant now faces heightened scrutiny at home on the heels of the European Union levying a record-setting $5-billion fine on the company on Wednesday.

 

The response is one of the strongest signs yet that the tougher oversight Silicon Valley companies have encountered in Europe could ripple to the United States.

 

At question are arrangements between Google and Android device manufacturers such as Samsung, LG and HTC.  

 

Google does what?
Image via The Daily Buzz

Google provides the Android operating system for free in exchange for guarantees the device makers pre-install Google’s search and web browser apps. 

 

The manufacturers also gain access to the Google Play Store, the main portal for third-party Android apps.

 

In turn, European regulators said the deals helped ensure Google’s dominance in internet search while also stifling innovation and competition.

 

The European Commission also levied a $2.7-billion fine on Google last year for promoting its shopping services in search results over its rivals.

 

Additionally, the European Union also introduced strict new privacy laws in May of this year which limit the ability of companies such as Facebook to compile and share personal data.

 

Joseph Simons, chairman of U.S. Federal Trade Commission, said his agency would “read what the EU put out very closely …” at a House subcommittee hearing just a few hours after authorities in Brussels ordered Google to change the way it makes Android device makers pre-install its search and Web browsing apps.

 

“In the antitrust world, most of the problematic conduct occurs where firms are big and have market power,” said Simons, referring to the duopoly of Google and Apple in the mobile software market.

 

“This is one of the places (where, ed.) we (should, ed.) focus.”

Source: Google’s European fine raises pressure on U.S. regulators to examine the company’s business practices

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