Google’s current antitrust case in the EU might be settled as early as next month, say those with more information than the public knows about the small details of the lawsuit. Both Politico and The Financial Times report that the amount of the fine is unknown, it’s likely going to be higher than the $2.8 billion fine Google was responsible for in a different case. According to Gizmodo, the EU can impose a fine of up to $11 billion, since the Commission can impose fines up to 10 percent of a company’s overall global turnover, creating severe consequences for those who violate the laws.
The case began in 2016 when the city of Brussels initiated a lawsuit against Google alleging that they had engaged in uncompetitive behavior with Android. Google requires smartphone manufacturers to install both Google Search and Google Chrome before gaining access to the Play Store, limiting consumer choice and giving the company an advantage. Google said they hadn’t done anything wrong.
The fine probably won’t have too much of an impact on the overall financial picture for Google, considering the $2.8 billion penalties didn’t impact the business model. The real issue is that ¾ of the phones in the European Union are powered by Google’s Android operating system, dominating the smartphone market. The hit could impact how successful the company is going forward. It’s even more worrisome since many consumers are switching from computers to mobile phones for their Internet needs. Now is the time to gain new mobile users, and modifying the current model could have dire consequences and a drop in users. Google also has several other lawsuits currently in process.
Margrethe Vestager, European competition commissioner, will announce the judgement’s outcome next month. If Google loses the case, they may be required to unbundle Android from its search business. It’s similar to Microsoft’s struggles in the 90’s and 00’s. Bill Gates’ company faced lawsuits in both the EU and the United States due to lack of competition. The lawsuits opened the path for lesser-known companies to compete in the technological race. One of these younger competitors that benefitted from the rulings is none other than, you know it, Google themselves.
