EU wants Google to stop anti-competitive Android practices, large fine expected
EXCLUSIVE: EU wants Google to stop anti-competitive
Android practices, fine expected
By Foo Yun Chee October 1, 2016
BRUSSELS (Reuters) - EU antitrust regulators plan to
order Alphabet's Google to stop paying financial incentives to smartphone
makers to pre-install Google Search exclusively on their devices and warned the
company of a large fine, an EU document showed.
The document, running to more than 150 pages, was sent to
complainants last week for feedback. Google received a copy in April in which
the European Commission accused it of using its dominant Android mobile
operating system to shut out rivals.
The EU competition enforcer in its charge sheet, known as
a statement of objections, said it planned to tell the U.S. technology giant to
halt payments or discounts to mobile phone manufacturers in return for
pre-installing Google's Play Store with Google Search.
The regulators also want to prevent Google from forcing
smartphone makers to pre-install its proprietary apps if this restricts their
ability to use competing operating systems based on Android.
Google "cannot punish or threaten" companies
for not complying with its conditions, according to the document seen by
Reuters.
The Commission's investigation followed a complaint by
FairSearch, a lobby group supported by companies that want to ensure they are
not disadvantaged by search engine market dominance, in March 2013.
Google could face a large fine because the
anti-competitive practices, which started from January 2011, are still ongoing,
the document said.
"The Commission intends to set the fine at a level
which will be sufficient to ensure deterrence," it said.
The penalty could be based on revenue generated from
AdWords clicks by European users, Google Search product queries, Play Store
apps purchases and AdMob's in-app advertisements.
Commission spokesman Ricardo Cardoso declined to comment.
Google which has previously denied any wrongdoing, did not immediately reply to
a request for comment.
Separately, the Commission is investigating whether
Google favours its own shopping service over those of rivals, and could also
fine it in that case.
Google may have to rank rival comparison shopping
services in the same way as its own services, the charge sheet sent in July
said. The document, close to 150 pages, was heavily edited, with large sections
of confidential information redacted by Google.
The Commission said it would decide at a later stage
whether to let Google charge competitors for displaying their services
prominently, with the amount corresponding to Google's operating cost or a
nominal amount based on the lowest reserve price for AdWords which is currently
0.01 euro per click.
(Reporting by Foo Yun Chee; Editing by Robin Pomeroy)
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