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Google hit with record $5 billion EU antitrust fine

The EU has slapped tech giant Google with a record anti-trust fine of $5 billion.

That's more than the $2.8 billion fine they hit Google with last year for its shopping service.

After a three year investigation, the EU accused Google of using its dominant Android mobile system to marginalise rivals. (SOUNDBITE) (English) EUROPEAN COMMISSIONER FOR COMPETITION, MARGRETHE VESTAGER, SAYING: "Google has used Android as a vehicle to cement its dominance as a search engine.

With these practices it has denied rivals a chance to innovate and compete on the merits.

They have denied European consumers the benefit of effective competition in the very important mobile sphere." Regulators say Google forces smartphone makers to pre-install Google Search along with its Play Store and Chrome browser.

Google denies the charges and argues that bundling Search with its Google Play allows it to offer the entire package for free.

Analysts say it's unlikely the fine will hurt the U.S. firm's finances too badly. (SOUNDBITE) (English) CMC MARKETS ANALYST, MICHAEL HEWSON, SAYING: "I think the fine is inconsequential four point three billion euros is round about 4 percent of Google's cash reserves.

I think it'll be interesting to know what sort of measures the EU insists in terms of the changes that Google is required to make to make sure the Android operating systems conform to the specifications that the EU wants." The fine may not be the last we've heard of the case, as Google says it will appeal the ruling.




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