Why EU Is Taking Google To Court Over Market Dominance

Alphabet’s Google is bracing up to meet European Union, EU in court for allegedly monopolising the EU market by imposing restrictions on Android device manufacturers and mobile network operators.

In less than two years, the EU slammed its second round of formal antitrust charges at Google for  breaching the bloc’s competition laws by giving superior treatment to its Android operating system on mobile applications.

A statement credited to Margrethe Vestager, EU antitrust commissioner, declares: “A competitive mobile internet sector is increasingly important for consumers and businesses in Europe. Based on our investigation thus far, we believe that Google’s behaviour denies consumers a wider choice of mobile apps and services and stands in the way of innovation by other players.”

Margrethe Vestager, EU Competition Commissioner Source: qz.com

Google could be fined up to 10% of its annual global sales, translating into a USD 7 billion if found guilty.

Google’s Android operating system is free. Google search, Gmail and YouTube are also Google’s cash cow. Britain, Germany, France, and Spain, except Switzerland are Android’s largest markets in Europe and Google holds more than 70% market share.

Image source: executivetechnology.wordpress.com

Analysts posit that if Google were to be no longer the default search engine on phones, that could have a negative impact on its business.

EU has other investigations against Google on its search services including other antitrust cases against Apple, Amazon and Microsoft.

On the other hand, Canada’s competition authority has been advised to close its probe of Google’s practices involving Android.

Featured image source: linkedin.com

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