The Times Herald (Norristown, PA)

EU fines Google a record $5 billion

- By Ryan Nakashima and Raf Casert

BRUSSELS » European regulators came down hard on another U.S. tech giant Wednesday, fining Google a record $5 billion for forcing cellphone makers that use the company’s Android operating system to install Google search and browser apps.

The European Union said Google’s practices restrict competitio­n and reduce choices for consumers.

While Google can easily afford the fine, the ruling could undermine the company’s business model, which relies on giving away its operating system in return for opportunit­ies to sell ads and other products.

Google immediatel­y said it will appeal, arguing that its free operating system has led to lower-price phones and created competitio­n with its chief rival, Apple.

Android has “created more choice for everyone, not less,” Google CEO Sundar Pichai tweeted .

The fine, which caps a threeyear investigat­ion, is the biggest ever imposed on a company by the EU for anticompet­itive behavior.

It is likely to stoke tensions between Europe and the U.S., which regulates the tech industry with a lighter hand and has complained that the EU is singling out American companies for punishment.

Still, some U.S. politician­s welcomed the ruling.

Democratic Sen. Richard Blumenthal of Connecticu­t tweeted that the fine should “be a wakeup call” to the Federal Trade Commission and “should lead US enforcers to protect consumers.” Blumenthal previously called on regulators to investigat­e how Google tracks users of Android phones.

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