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Google’s business model at stake...


humble3d

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Google’s business model at stake...

 

Record-breaking fine expected this week...


European regulators are expected to hit Google with a multibillion fine on Tuesday or Wednesday, an announcement that’s being closely watched not because of the anticipated size of the penalty — Google basically prints money at this point, so it will be able to easily absorb the blow.

 

What’s really at stake is whether the EU uses the fine to force changes in the way the search giant does business.

 

The penalty coming this week is a product of Google’s longstanding policy of requiring Android device makers to set Google’s own search and web browsers as the default offerings.


European regulators could fine Google as much as $11 billion if they wanted to, but while the fine is not expected to be that high, it is expected to top last year’s $2.72 billion antitrust penalty against Google for unfairly ranking its comparison-shopping service over similar offerings from rivals in search results.

 

The reason this week’s fine will likely surpass that amount is because the the probe that brought regulators to this point was much more expansive.

 

At issue are the rules Google binds phone makers to if they want to use the company’s Android operating system, and how far European regulators might want to go in possibly forcing Google to level the playing field.

 

Making it easier for smartphone makers, in other words, to choose what apps they want to pre-install on devices.

 

In a blog post, Google general counsel Kent Walker defended the company’s position by explaining that distributing products like Google Search together with its Google Play app store “permits us to offer our entire suite for free — as opposed to, for example, charging upfront licensing fees.


This free distribution is an efficient solution for everyone — it lowers prices for phone makers and consumers, while still letting us sustain our substantial investment in Android and Play.”


A Reuters report out today, meanwhile, speculates that anyone hoping regulators use this week as a chance to take Google down a peg may end up disappointed.


Specifically because, well, it’s probably too late at this point.


The piece quotes Richard Windsor, an analyst at research company Radio Free Mobile.


Google is too entrenched, he explains, a reference to realities like Android boasting a more than 75 percent market share in four of Europe’s five biggest regions, according to Kantar Worldpanel.


Which means, Windsor continues, that users in Europe are now “completely accustomed” to using Google services — and even prefer them.


“Hence, I think separating Google Play from the rest of Google’s Digital Life services would have very little impact as users would simply download and install them from the store,” Windsor said.

 

https://bgr.com/2018/07/16/google-antitrust-fine-this-week-will-break-record/

 

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Same thing happen to  Microsoft in the EU over them putting IE in Windows and they got sued for it and ended up putting in  a  thing in windows were users could download other browsers and that's how other browsers on windows ever got a chance ... From 2001-2006 i just used IE because really i didn't know no different and really didn't care because in the USA they was not required to put that in Windows, only in the EU they was . still Microsoft being sued did not help any no one ever came out with any real replacement for Windows for the masses so it remains a monopoly on desktop tell this day and every since 2015 they been pushing hard for people to use there browsers again , you're lucky to even get chrome to work on Windows 10 .

 

Many open source smart phone OS vendors already called it quits like Ubuntu and Firefox OS because Goggle's Android  OS is freeware but not free as in free . But free as in you pay with your privacy . They dont have no real computation except for apple IOS witch is too expensive  . While IOS  may do good in some countries its on the way out with the new cheap Android phones flooding the market. Google will be fine they may have to adjust things with a few smoke and mirrors to please the  EU but they want have to change it no were else .

 

No one is expecting  them to fine Google  the maxim but any thing over $2.72 Billion will set a new record. Even $11 Billion  want hurt a giant like Google who is worth over $600 billion and makes a $100 million a day.

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Predictions for the amount of the fine vary widely. The Capital Forum, an antitrust news and analysis firm, said it could range between 4 billion to 5 billion euros. Levies are based on revenue in the market being probed and can’t exceed 10 percent of a company’s global annual revenue. Google raked in around 25 billion euros in digital advertising in Europe in 2017, equity research firm Pivotal Research estimates.

 

https://www.bloomberg.com/news/articles/2018-07-17/google-said-to-have-11th-hour-call-with-eu-ahead-of-android-fine

They make over $29 Billion US from the EU alone in just  one year. Even at $11 Billion that's less than half of what they raked in on ads from the EU last year.

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