Google will face the highest fine in history: Android system monopoly may be broken

Google faces a record fine from the European Union this week for using its Android smartphone system to protect its search engine. The fine, likely to be announced on Tuesday or Wednesday, is likely to exceed the £2.1 billion fine Google paid last year for abusing its monopoly over online shopping and escalating the war between Silicon Valley and Brussels.

(Image from: Google)

European Commission antitrust chief Margrethe Vestager has been investigating Google for three years over complaints that it illegally forces smartphone makers to install Google apps. Google provides its Android software to phone makers for free, but bundles it with a "monopoly agreement" that forces manufacturers to install Google's web browser and search engine if they use its app store.

Google's rivals claim the monopoly has given it a 74 percent share of the European smartphone market and hurt rival search engines and browsers. Google, meanwhile, insists the deals allow manufacturers to still try Android for free and help it compete with Apple.

The European Commission has the power to fine Google up to 10% of parent company Alphabet's annual turnover, or €9.5 billion (£8.4 billion). Although the EU is not expected to impose the maximum fine this time, it is likely to be higher than the $2.4 billion fine paid by Google in June last year.

In addition to the fine, Google is expected to be required to unwind its agreements with phone makers, which could mean more Android phones will not have Google software installed, and could also lead to the promotion of rival search engines and web browsers, such as Microsoft's Bing or Firefox.

The fine is expected to be announced on Tuesday or Wednesday, just before the summer break in Brussels, according to sources. A meeting between the European Commission and European competition authorities is expected to be held on Tuesday to finalize the decision. So far, neither Google nor the European Commission has commented on this.