Google faces fines for anticompetitive Android practices in Europe

European regulators could hit Google with large fines if the company does not stop offering financial incentives to smartphone manufacturers to pre-install its own apps on handsets. Documents obtained by Reuters show that a potential fine could be linked to the revenue Google makes from AdWords.

With advertising being Google's primary source of income, this has the potential to be a fine of unparalleled magnitude. The European Commission knows that it needs to hit Google where it hurts if anticompetitive practices are to be effectively discouraged. The Commission says it "intends to set the fine at a level which will be sufficient to ensure deterrence".

The 150-page statement of objections document obtained by Reuters was sent out to Google's complainants last week looking for their feedback. Google's habit of offering discounts, or even payments, to phone manufacturers for pre-installing Google Play is frowned upon as it is seen as being unfair to the company's rivals.

Google is unlikely to take any punishment that may be handed out lying down. The company clearly feels it has done, and is doing, nothing wrong. A spokesperson said:

We look forward to showing the European Commission that we've designed the Android model in a way that's good for both competition and consumers, and supports innovation across the region.

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