News that the European Union ruled that Google’s Android system has a monopolistic behavior, or will impose a fine of up to 11 billion U.S. dollars

[The news that the European Union ruled that Google's Android system has a monopolistic behavior, or will impose a fine of up to 11 billion U.S. dollars] The European Commission started its investigation of Android in 2015. In a contract between Google and the handset manufacturer, the company asked the latter to pre-install a folder. This folder that appears on the mobile home page contains 11 applications.

According to foreign media reports, the stock price of Alphabet crashed on Wednesday after EU officials attacked the company’s parent company Alphabet with “negative results”. Due to the abuse of Android’s mobile operating system’s dominance over its fine of US$11 billion. .

The Financial Times quoted sources as saying on Wednesday that the EU antitrust commissioner Margrethe Vestager will make a ruling in the coming weeks. The exact amount of the penalty is not yet clear, but the European Commission has the right to impose a fine of up to 11 billion U.S. dollars on Alphabet.

After the news was exposed, Alphabet's share price fell sharply over 1% on Wednesday. At the close, the company's stock price stabilized slightly, down 2.78 US dollars from the previous trading day, a decrease of 0.24%, to close at 1136.88 US dollars. Based on the closing price, Alphabet’s market capitalization is approximately USD 794.3 billion.

Because of growing concern over Alphabet’s technology monopoly, the European Commission’s anti-monopoly agency has previously launched three antitrust investigations against the company. Critics and legislators have been arguing for the split of leading tech giants such as Google, Amazon and Facebook. But so far, the biggest threat to Silicon Valley still comes from Europe.

Alphabet warned investors last year that the investigation of the company by the European Commission may end in 2018, and the company may face huge fines. In June last year, after a seven-year investigation, the European Commission ruled that Google abused the search engine market dominance and provided illegal advantages to other Google products (comparative shopping services), thus issuing 2.42 billion euros (about 27 million euros) for the company. Billion dollars). Prior to this, the largest anti-monopoly fine issued by the European Commission was a fine of 1.06 billion euros for chip giant Intel in 2009.

The European Commission began investigating Android in 2015. In a contract between Google and the handset manufacturer, the company asked the latter to pre-install a folder. This folder that appears on the mobile home page contains 11 applications.

Vistag previously said that Google has suppressed innovation by making it harder for other applications to gain user attention. She said, "By requiring equipment vendors and carriers to pre-install their applications rather than allowing them to decide on their own pre-installed applications, Google may be stuck with one of the main channels that new applications are noticed by users." According to the statement, Google has already responded. The company said that consumers have the right to use which application. However, some operators and hardware manufacturers do not agree with Google's view. An anonymous European telecom industry executive said, “How do we compete with Google without users knowing the competition?”

The relationship between Google and Android is different from the relationship between Apple and iOS. Google did not make all of its Android phones. Therefore, third-party mobile phone manufacturers and operators that sell their own branded mobile phones can make public complaints against Google. The anti-monopoly lawsuit that Android encountered in Europe, partly rooted in the worrying relationship between Google and European telecom operators. European telecom industry executives said that the regulator’s push against Google’s anti-monopoly lawsuits is the result of continuous lobbying by operators. Telecom industry executives believe that Google’s promotion of its own applications makes it difficult for them to promote their own video or e-mail applications, which limits their ability to sell advertising and undermines the voice of Google’s revenue sharing negotiations.

Android handset makers also complained that because it was not possible to freely choose which applications to pre-install on the device, it made it difficult for them to distinguish their own devices from their competitors' devices. Google executives responded that the operators and handset makers were not limited to pre-installing their own applications on mobile phones. If operators or handset manufacturers do not want Google's applications, they are not forced to pre-install these applications.

As of now, both the Alphabet and EU officials have not commented on this report.

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