Android, being one of the world’s leading smart phone OS, has been put into legal trouble by the European Union Commission for exploiting its dominance. EU has accused Google Inc. (GOOGL) for being anti competitive and misleading for providing biased search results, i.e. artificially favoring its own shopping service.
Margreth Vestager, EU Competition Commissioner, declared official statement regarding the law suit where she alleged Google of cheating customers and compelling phone manufacturers through financial enticement to incorporate its applications in their phone in exchange of permitting the access to Google’s play store and forcing the customer to use Google Chrome as the default search engine.
Talking about European competition law, the commissioner further stated about Google influencing the consumer’s ability to search and purchase in its own interest and showing biased results to the searches being made. According to EU, it has been happening on a systematic basis regardless of whether it is the most relevant result. The challengers have stated that the web giant is harming the trust of general public by abusing its dominance in the worldwide web.
Google clearly denied the accusations but the analysts predict that Google shares might face turbulence until the matter of contention is sorted out while Google’s adversaries are demanding an immediate investigation of the issue from the U.S antitrust agency. As per the accusations, preplanned installation of Google apps would amount to a number of dollars that Google makes through its web traffic.
An official competition commission is soon to be launched to investigate the matter. The investigation could take up to five years and as a result, Google might face the punishment in the form of paying a compensatory amount to EU of about 6.2 billion Euros that makes up of 10% of Google’s annual sales.
The results of law suit might be damaging for Google Inc. but there have been multiple antitrust cases in the past as well that Google is fighting in the EU and hopes to come out clean by declaring its revenues and strategies against the online business giants such as Amazon.