Google lost an appeal over a record fine of $3.99 billion imposed on the tech giant by the European Commission regarding an antitrust violation linked to its Android operating system.
Google was charged by the EU court of restraining competition. The court upheld that the tech giant is using its Android dominance to "forcibly require phone makers to include apps for Google services," as per CNET.
EU Court Charges Google with $3.99 Billion Penalty
Google made an appeal to challenge the 2018 fine. However, the European Court of Justice's General Court "mostly confirmed" the 2018 decision of the EU's Executive Commission to fine the tech giant with more than 4.125 billion euros or $3.99 billion.
The tech giant had allegedly suppressed competition, and reduced consumer choice by using its Android dominance, as per AP.
The decision of the EU court showed that EU regulators has succeeded in "taking a global lead in controlling the power of big tech companies."
The EU court said that it is only appropriate to charge Google with 4.125 billion euros penalty "in order better to reflect the gravity and duration of the infringement."
The said fine is slightly lower than the original 4.34 billion euros penalty. According to the EU court, some of its reasonings are different "in certain respects" than that of the commission's.
However, Google said in a statement that: "We are disappointed that the Court did not annul the decision in full."
According to the company, Android did not provide less choices for everyone. Instead, it has provided more options. Moreover, Google claimed that Android has provided support to thousands of successful businesses in Europe.
The 4.125 billion euros fine is just one of three antitrust penalties that European Commission charged to Google between 2017 and 2019. The three penalties have a total of $8.5 billion.
With these penalties, EU is considered at the forefront of the move to "rein in tech giants."
Read Also: Google Offers To Pay Developers $90 Million To Settle Antitrust Lawsuit
Google Has Broken EU's Rules
According to the EU court, they found out that Google's agreements with phone makers restrained competition.
Moreover, since companies such as Huawei, Samsung, and LG are heavily dependent on Android, Google's agreement reduced choices for consumers.
According to CNET, the company's agreements stipulated that the phone makers should preinstall certain Google apps and search tools, including the Google Play Store, on Android devices. This gives Google an advantage to keep its dominance in search.
The court said that Google has broken EU's rules when it required smartphone makers to have a bundle of Google apps preinstalled in the device. Another violation of Google is it prohibited them from selling devices that have an altered version of Android.
While the bundle has 11 apps, the regulators focused only on Google Search, Chrome and Play Store, the three apps having the largest market share.
To address the issues Google employed certain changes. One of these changes is giving the European Android users a choice of browser and search app.
Related Article: Google Will Face Multistate Antitrust Lawsuit Over Ad Dominance, Judge Rules
