*By Alisha Haridasani* Google on Wednesday said it will appeal a record $5 billion fine from EU regulators for using its Android platform to quash competition. But its argument may not have legs to stand on, said Quartz reporter Edmund Heaphy. "The law is quite clear-cut, and the antitrust regulations are quite clear," he said. "This isn't a new thing for the EU. Microsoft was fined in 2004 for a very similar practice." The European Commission holds that Google unfairly leveraged the market position of Android, the mobile operating system that powers about 80 percent of phones in the world. “Google has used Android as a vehicle to cement the dominance of its search engine,” said Commissioner Margrethe Vestager in a [statement](http://europa.eu/rapid/press-release_IP-18-4581_en.htm). The company has 90 days to end its illegal practices and, if it fails to comply, parent company Alphabet will be forced to fork over 5 percent of its average daily revenue. The company brought in $103 billion last year. Google argues its Android system has, in fact, encouraged competition. “Rapid innovation, wide choice, and falling prices are classic hallmarks of robust competition, and Android has enabled all of them,” said CEO Sundar Pichai in a [blog post](https://blog.google/around-the-globe/google-europe/android-has-created-more-choice-not-less/). The Silicon Valley giant offers the Android system for free to handset makers and makes money off of its search engine. This ruling, however, could force Google to radically change that business model and instead start charging manufacturers to use Android, said Pichai. The fine announced Wednesday is the largest antitrust penalty ever levied, further demonstrating the European bloc's attempts to rein in tech companies that, across the Atlantic, are perceived as untouchable. The EU slapped Google with a separate $2.7 billion fine last year ー which at the time set its own record ー for unfairly promoting its own shopping service in search results. And in May the union implemented the General Data Protection Regulation, raising the standards for user data privacy and forcing companies around the globe to alter their data collection processes. For the full segment, [click here.](https://cheddar.com/videos/google-hit-with-5-billion-eu-fine)

Share:
More In Business
Nestlé dismisses CEO after he has relationship with a subordinate
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz undoes blockbuster merger after a decade of falling sales
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
Load More