Europe's regulators object. "These practices have denied rivals the chance to innovate and compete on the merits", says Margrethe Vestager, the competition commissioner.
Google was fined 4.3 billion euros ($5 billion) by the European Union and ordered to change the way it puts search and web browser apps on Android mobile devices, setting a global record for antitrust penalties. The European Union just slapped a Five Billion Dollar fine on one of our great companies, Google.
It also said Google broke the law by forcing manufacturers that took its apps to commit to not selling devices that use altered versions of Android.
If Google is unsuccessful, then there could be some noticeable differences. What is installed by default is a big part of the EU's complaint, which objects specifically to the automatic installation of the Chrome browser and Google's Play store. The more precise the information Google has about the users of Android phones, the more precise its ads can be, and the more advertisers will pay for them.
The most dominant company of the world Google Inc. had initially dropped a small hint about its in-house project Fuchsia back in the year 2016 on GitHub without any official announcement.
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The EU wants to ensure that phone makers are free to preinstall apps of their choosing and allow for competition in services such as Internet searches.
So Android's profitability is now threatened by a vindictive Oracle on one front and a European Commission intent on squeezing it hard on the other. In its view, an European Union ruling will harm app developers and customers by undercutting Google's business model of giving away Android software and generating revenue from mobile advertising. This may force the company to rethink its plans on the development of Android. Google reaps the benefits of those partnerships because its products, such as search, are baked into the software and used by millions. Even if Fuchsia ends up replacing Android and Chrome OS, it is not going to happen for another 2 or 3 years. Worldwide, Android is being used by almost 80 per cent of mobile users, according to StatCounter, a web analytics firm.
Google still hasn't said why it's building Fuchsia, but Bloomberg's sources said the company eventually hopes to run all of its devices on the same operating system.
Some 1.3 billion Android smartphones were sold previous year, compared with approximately 215 million running on iOS and 1.5 million with other operating systems, according to the research firm. That cost would probably be passed on to all consumers, he said.
In his response, in a blog post, Sundar Pichai makes the very valid point that in making a decision on the grounds of Google's anti-competitiveness, it ignores the competition Google's Android faces from Apple's iOS phones.