EU set to fine Google billions over alleged abuse of power

According to the Financial Times, the European Commission is ready to impose a second antitrust fine on Google over alleged abuse of power in Android licensing deals with phone makers.

The first fine was imposed last year and was the largest in EU history at $2.8bn. Google appealed the fine and will probably do so again with the new one.

According to the FT, EU Competition Chief Margrethe Vestager is "poised to announce the negative finding within weeks [...] marking the most significant regulatory intervention made against Google’s business model."

Defence competition authorities in Brussels claim that Google’s app-install requirements in Android-OEM contracts favour Google services and harm consumer choice. Google could potentially be liable for a penalty of up to $11bn, but it is unlikely that the final sum will reach that figure.

Separately, Vestager told The Telegraph that the ability to break up Google had to remain a real threat.

The case shares similarities with that of Microsoft in 1998, which then had the most popular operating system for PCs in the world, Windows. However, both Brussels and Washington said the Redmond, Washington-based firm was depriving users of choice by bundling the Internet Explorer browser and its Media Player with the operating system, triggering the anti-trust action.

As of 1548 BST, shares of Google’s parent company, Alphabet were dropping -1.61% to $118.58 following the FT report.