European Union countries became so strict in the privacy of their users to the next level. Even they fined many tech company giants for violating their privacy laws. No matter how big the company is if the company slightly violated any privacy policies those companies need to pay a very high penalty to the European Union.
Why does Google need to pay $5 Billion dollars?
Recently, Europian Union fined Google with a whopping $5 billion dollars for forcing mobile manufactures companies to install Google search and Google Chrome applications. So, the condition was like that… If companies agree to keep Google search and Google Chrome as their default apps only then Mobile manufactures can access Google PlayStore. In my case, it’s not so cool.!
Even last year Google need to pay penalty for Unfair favouring of its own service in internet search results.
What action had the European Union countries taken against Google?
Margrethe Vestager, the European Union’s competition chief, ordered the company this week to cease pushing its own search and Web-browsing tools on smartphones and tablets running Google’s Android system.
Due to this, Google lost it’s grip over Android a little bit because now smartphones which are sold in Europe will not come with the default Google search and its following applications.
By this, Google search engine competitors like Yahoo, Yandex and others have some chance to get into the competition.
Why is the penalty so high?
Basically excluding China, 80 to 90% of the mobiles users use Android Globally. It has a huge market share and Google is forcing manufacturers to keep the search engine and browser default to Google. indicating to regulators that the vast majority of people are not changing their settings.
In return, it just destroys the competitions which cause huge loses to other browsers and search engines as well. Bundling those apps helps Google collect data about mobile users and ensures a wide audience is using Google products. Which means the company can show more ads to more people.
How CEO of Google responded to this?
Sundar Pichai claimed that we have opened our choices to everyone, they can delete our apps and are free to use another search engine if they want. We did not restrict any user to stick to our Google Applications. Users can install other application for making search and other browsers as well.
On a small scale, the ruling could change what apps are installed when Europeans pick up a new Android phone from the store. When faced with antitrust charges before, Google has given people the option to choose between services while setting up their phones. An antitrust dispute in Russia, for example, prompted Google to change its design to offer people a choice of search engines on the Chrome browser when they set up their phones.
So finally, Google has 90 days of time to remove all the restriction for Mobile manufactures. Now, the phones which are sold in Europe won’t find any pre-installed Google Apps.