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| What are the reasons for the $5 billion fine on Google by the EU? |
Android is one of the largest mobile operating systems, used in 80 percent of the world’s smartphones.
Google provides the Android operating system to third-party handset makers. As part of the arrangement, Google requires Android phone makers to pre-install Google apps on their phones. That strategy has helped Google’s signature products — search, maps, Gmail and the Chrome internet browser among them.
Now let's discuss why Google was fined over 5B USD from EU.
There are three reasons stated on the website.
So the first one is
1) Google has required manufacturers to pre-install the Google Search app and browser app (Chrome), as a condition for licensing Google's app store
Now if you want to understand this I will give you a little idea of how Android works.
There are about 2 different types of Android available for Mobile manufacturers. To be precise,
- Android Google Mobile Service (GMS)
- and Android Open Source.
SO Android Google Mobile GMS has an access to Google Play Store which is the main market for Android and without that, of course, Android is not complete. And on the other hand, The Open source version of Android doesn't have the Google Play Store which makes it useless.
Now if any Android Mobile Manufacturer wants to use GMS then they must have to pre-install Google Search and Google Chrome Browser. Without pre-installing, they won't be able to get the GMS version of Android. Meaning if you didn't pre-installed Google Search and Chrome Browser you won't get the Play Store access and according to EU it is forced monopoly and is not liked by them.
Now moving to the second point it says,
2. Google made payments to certain large manufacturers and mobile network operators on condition that they exclusively pre-installed the Google Search app on their devices;
Meaning Google had paid payments to Europe mobile manufacturers and mobile network operators to pre-install the Google Search App On their
devices. This again shows that Google wants to dominate the search engine. And is highly unliked by EU
Moving to the final point it says,
3. Google has prevented manufacturers wishing to pre-install Google apps from selling even a single smart mobile device running on alternative versions of Android that was not approved by Google (so-called "Android forks").
Meaning if a manufacturer makes the smart device on alternatives to Android you can take an example of Amazon Fire OS then they won't be able to make android Mobiles. Here again, shows Forced Monopoly.
According to EU, this was a force monopoly technique by Google. Also, pre-installation of such apps, blocking alternatives and paying manufacture for pre-installation of Google search reduces the ability of rivals to compete effectively with Google which could harm their economy.
Now, let's move to the final question What does this mean to us consumers?
Well if you're not living in Europe then it won't affect you. And if you're in Europe then it won't affect you again.
Even If Google simply let handset makers ship Android phones loaded with their own browsers and app stores instead of Google’s, Still Keep in mind that Google is staffed with some of the world’s top lawyers and engineers, who will probably find solutions that have a minimal impact on its business.
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