European authorities fined Google a record $5.1 billion on Wednesday for abusing its power in the mobile phone market and ordered the company to alter its practices, in one of the most aggressive regulatory actions against American technology giants and one that may force lasting changes to smartphones.
The fine was coupled with remedies that would effectively loosen Google’s grip over its Android software, which is used in 80 percent of the world’s smartphones and is a key part of the Silicon Valley company’s business. Those changes, which European regulators ordered to take effect in 90 days, undercut Google’s ability to automatically include its own search and other apps in mobile devices, opening it to more competition in a market that it has dominated.
“Google has used Android as a vehicle to cement the dominance of its search engine,” said Margrethe Vestager, Europe’s antitrust chief. “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.”
Source: The NewYork Times