EU regulators have been looking into the business practices of Google around its Android OS and are reportedly due to order the company to change the way it works with OEMs and slap it with a fine in the coming week.
According to Reuters, the European Commusion has produced a 150 page document laying out why the EC feels Google has abused its dominant position, which was initiated by a complaint from a roup known as FairSearch.
In a nutshell, the issue comes down to the way in which Google provides monetary incentives (up-front payments or discounts) to manufacturers that agree to install Google Play Store with Google Search on the devices by default. Obviously, given that Google’s primary business is selling ads, having its core app on every Android device is solid start. It’s been doing this for more than five and a half years.
The Commission is due to reveal its findings in the coming week, and is said to be prepping a significant fine for Google for its last five years of activity. This could be based on things like Search revenue, Play Store purchases or other in-app advertising methods, but will likely be punitive to discourage Google (or any other companies) from doing similar things in future.
It’s also likely that Europe will tell Google that it isn’t allowed to punish (or threaten) companies that don’t agree to install its services and apps as standard.
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Does pre-installing Google apps on its own OS sound unfair to you? Let us know in the comments below!