Google Suffers Loss Worth Billions As Company Loses Appeal For EU Antitrust Case

In 2018, Google was deemed guilty of using its power to ensure competition around it was limited. The EU proved that the search engine giant was doing everything to restrict other archrivals from gaining a market share.

And this anti-competitive behavior was not going to be tolerated by the EU for much longer. But what was the issue all about?

Well, Google used unfair means to make itself more prominent and prevent others from coming forward. Anyone selling devices linked to the company’s Play Store would now follow strict guidelines. Those who failed to abide by the fixed set of restrictions would pay a high cost in the form of having their products stripped. And some of those prerequisites included preinstalls of Chrome and even Google’s Search.

After being penalized, Google was seen appealing to the findings, and in return, the massive fine worth 4.35 billion euros was slightly decreased.

The court of law supported the decision that came Google’s way and agreed that the search engine giant had put forward unnecessary restrictions on numerous Android devices and various mobile operators as well.

They felt the company's main target was to uphold its leading position in the industry. Most of the devices recovered in the investigation were Android, and Google had made sure that its own apps would get a benefit over others. To put it simply, the tech giant really abused its leading position.

Three major restrictions that were deemed ridiculously unfair included the likes of so many distribution agreements. Having anyone preinstall apps and services for your own benefit to get a license for using the Play Store wasn’t correct.

Next up, there were plenty of anti-fragmentation agreements that were also considered to be unfair. These would only be undertaken if and when a manufacturer agreed not to sell devices with systems that weren’t given the green light of approval by Google.

Lastly, the concept of having revenue-based share agreements was also not appreciated. A share would only be provided to relevant mobile operators or manufacturers who failed to install a fellow competing service for search on a fixed number of devices.

When you actually come to think of it, a long list of the problems mentioned here that Google is being punished for arising from its main distribution agreement.

The fact that there is a mandatory rule of including a bunch of Google’s apps on Android phones so you can avail of the benefits at the Google Play store just isn’t fair.

Leading device makers are left with no choice but to sign huge agreements, so their devices pass some of the biggest tests out there for it to avail Google’s leading benefits. It all comes under the title of Google Mobile Services.

But after the ruling that took center stage in 2018, European device producers are no longer told to abide by these regulations like forced pre-installs of Chrome and Search on the company’s app.

Every ruling was upheld, and Google’s appeal on the case was rejected, forcing it to pay a huge fine.

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