Google Socked With $5.1 Billion EU Fine on Android Antitrust Issues

Advertisement

Google stock - Google Socked With $5.1 Billion EU Fine on Android Antitrust Issues

Source: Shutterstock

Alphabet’s (NASDAQ:GOOGL) Google unit was fined $5.1 billion by European antitrust officials on Wednesday for what the agency described as abusing its power in the smartphone market. Google stock was trading down this morning in pre-market activity.

A fine had been anticipated, but it is a record and almost twice the size of the nearly $2.8 billion penalty that the European Union hit Google with last year for unfairly favoring its own services in internet search results.

According to media reports, EU officials said the maker of the Android mobile operating system broke antitrust laws with its deals with handset manufacturers, including Huawei and Samsung. Those agreements required Google’s services, such as its search bar and Chrome browser, to have an advantage over other offerings. Antitrust authorities said those actions unfairly prevented competition.

“Google has used Android as a vehicle to cement the dominance of its search engine,” said Margrethe Vestager, Europe’s antitrust chief, according to The New York Times. “These practices have denied rivals the chance to innovate and compete on the merits. They have denied European consumers the benefits of effective competition in the important mobile sphere. This is illegal under E.U. antitrust rules.”

Following the June 27, 2017 announcement of the then-record penalty, GOOGL stock dropped 3% over the next three days. In the more than 12-months since then, Alphabet shares have climbed 29% to a record $1,155 a piece.


Article printed from InvestorPlace Media, https://investorplace.com/2018/07/google-socked-with-5-1-billion-eu-fine-on-android-antitrust-issues/.

©2024 InvestorPlace Media, LLC