European Commission Slams $5 Billion Fine On Alphabet Inc Class C (NASDAQ:GOOG) For Abusing Dominance Of Its Android Platform


The European Commission has slammed a fine of $5 billion on Alphabet Inc Class C (NASDAQ:GOOG) for abusing dominance over its mobile operating service, Android. As per the reports, the search engine giant tried to handle and settle the issue secretly with the European Commission. According to Margrethe Vegstager, the European competition commissioner, Google tried to resolve the investigation secretly before the imposition of a fine.

Google’s lawyers tried to make settlement with EU

The company’s lawyers discussed with the EU officials about chances of making a settlement prior to investigation in June 2017, a few weeks after European Commission announced the penalty. During a press conference, Vestager neither denied nor approved the possibilities of a settlement which encouraged the lawyers of Google to try out for the settlement. The letter was drafted by the legal representatives of Google in August 2017. The letter included suggestions addressing the concerns of EU.

In its letter, Google even expressed its readiness to make certain adjustments in the contracts as per the objections made by EU. However, according to Vestager, the company waited for a longer time than expected to reach out to the organization.

Google waited way too long to approach EU’s officials for settlement

Vestager stated that in the case a company is interested in settling a certain issue; it should get in touch with the concerned authorities immediately after they receive the statement of objections or initial complaint from the EU authorities. According to the European competition commissioner, since Google’s approach was delayed, now it will have to face the consequences. However, the lawyers of Google have stated that they did not receive any formal response from EU and that the commission rather chose for a cease-and-desist letter.


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Until now, Google has been exposed to three probes, a number of headlines and demanding action from the customers. Rather Google is one of the few companies which are on the antitrust target list of EU. Google has failed two times in striking a settlement with the authorities of EU. There has been no comment regarding the settlement attempts of the company. However, the CEO of the company, Sundar Pichai stated that Google is planning to appeal the decision of EU and that the company is always ready to make changes.


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