EU slaps record $5 bn fine on Google, Pichai says will appeal
Brussels, July 18: Accusing Google of illegally using Android mobile devices to strengthen dominance of its search engine, the European Commission on Wednesday imposed a record fine of 4.34 billion euros ($5 billion) on the tech giant, which said it would appeal against the decision.
According to the Commission, Google has imposed since 2011 illegal restrictions on Android device manufacturers and mobile network operators to cement its dominant position in general Internet search.
Google must now bring the conduct effectively to an end within 90 days or face additional penalty, the ruling said.
Reacting to the ruling, Google CEO Sundar Pichai said the company will appeal against the Commission's decision.
"Rapid innovation, wide choice, and falling prices are classic hallmarks of robust competition. Android has enabled this and created more choice for everyone, not less. This is why we intend to appeal today's Android decision," Pichai wrote in a blog post immediately after the verdict.
The decision, according to the Google CEO, ignores the fact that Android phones compete with iOS phones.
"It also misses just how much choice Android provides to thousands of phone makers and mobile network operators who build and sell Android devices; to millions of app developers around the world who have built their businesses with Android; and billions of consumers who can now afford and use cutting-edge Android smartphones," Pichai wrote.
According to Commissioner Margrethe Vestager who is in charge of competition policy, their case is about three types of restrictions that Google has imposed on Android device manufacturers and network operators to ensure that traffic on Android devices goes to the Google search engine.
"In this way, Google has used Android as a vehicle to cement the dominance of its search engine. 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. This is illegal under EU antitrust rules," Vestager explained.
In particular, Google has required manufacturers to pre-install the Google Search app and browser app (Chrome), as a condition for licensing Google's app store (the Play Store).
The company made payments to certain large manufacturers and mobile network operators on condition that they exclusively pre-installed the Google Search app on their devices.
The Commission also found that Google prevented manufacturers wishing to pre-install Google apps from selling even a single smart mobile device running on alternative versions of Android that were not approved by Google.
The Commission's decision, according to Google CEO Sundar Pichai, sends a troubling signal in favour of proprietary systems over open platforms.
Pichai said the company has always agreed that with size comes responsibility.
"A healthy, thriving Android ecosystem is in everyone's interest, and we've shown we're willing to make changes.
"But we are concerned that today's decision will upset the careful balance that we have struck with Android, and that it sends a troubling signal in favour of proprietary systems over open platforms," he added.
The Commission, however, said that as Google obtains the vast majority of its revenues via its flagship product, the Google search engine, the company understood early on that the shift from desktop PCs to mobile Internet, which started in mid-2000, would be a fundamental change for Google Search.
So, Google developed a strategy to anticipate the effects of this shift, and to make sure that users would continue to use Google Search also on their mobile devices, the Commission said.
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Assam: RSS files police complaints against Kharge for 'derogatory' remarks at poll rally
Guwahati (PTI): The RSS on Wednesday said it has filed complaints at two police stations in Assam against Congress president Mallikarjun Kharge for allegedly comparing the ideology of the organisation and the BJP with a 'poisonous snake' at an election rally.
The complaints were filed to seek legal action over alleged ''derogatory, provocative, and communally sensitive statements made during a recent election rally in south Assam, a RSS spokesman said
In the complaints, the Rashtriya Swayamsevak Sangh alleged that the Congress chief had made controversial remarks during an election rally in Nilambazar under the Karimganj South assembly constituency in Sribhumi district.
"If a poisonous snake is moving in front of you while you are offering namaz, you must stop the prayer and rush to kill the poisonous snake first - that is what the Quran prescribes you to do. I tell you that the RSS and BJP are like that same poisonous snake,” Kharge was quoted as saying in the complaints.
The RSS expressed serious concern, claiming that such remarks were "inflammatory in nature and capable of inciting hostility, intimidation, and violence against workers and supporters of the RSS and the BJP".
The complaints pointed out that the statement constitutes a ''corrupt electoral practice under Section 83 of the Representation of the People Act, 1951, and the remarks criminally intimidated the public and promoted enmity between supporters of different political and social groups''.
Describing the ideology of RSS and BJP as “poisonous” and calling for their elimination could encourage "bodily harm against members and supporters of these organisations", the complaints said.
Kharge's remarks attempt to promote ''communal division between Hindu and Muslim communities, potentially disturbing public peace and harmony in Assam and influencing the electoral environment", the RSS said.
The complainants also claimed that such statements might lead to communal tensions or clashes if not addressed promptly by authorities.
The complaints were filed by RSS' North Assam secretary Khagen Saikia at Dispur Police Station and South Assam's secretary Jyotsnamoy Chakraborty at Silchar PS.
The BJP had also filed complaints on the same allegations at the Basishta Police Station here and with the Election Commission on Tuesday.
