Google Reacts to EU Attack on its Mobile ATM

Google goes to court this week to overturn a record $ 5 billion European Union fine and antitrust injunction that hit the very heart of the American tech giant’s ability to make money.

In a five-day hearing before the EU court in Luxembourg, the company will tell judges that the European Commission has wrongly called for changes to allegedly anti-competitive contracts with phone manufacturers that use its Android operating system, which powers courtroom machines for the vast majority of mobile Devices.

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The Android case is one of three decisions that were at the center of efforts by EU antitrust chief Margrethe Vestager to curb the growing dominance of Silicon Valley, which fined Alphabet Inc. € 8.2 billion ($ 9.6 billion ) imposed. overall and is still exploring the company’s alleged dominance over digital advertising.

The case “will set great precedent for the United States”. where “exactly the same issues are being examined,” said Tommaso Valletti, an economics professor at Imperial College London who advised regulators on the case during his time as an EU antitrust economist. the companies are relatively unusual and “if the commission is lost in this case, they can become even rarer.”

This week is about the EU’s findings on contracts that require Android phone manufacturers to use Google’s search and browser apps and other Google services when they want to license the Play App Store.

The EU viewed the contracts as an illegal restriction, but Google says this decision undermines a business model that allows Android software to be made available for free while generating advertising revenue.

Based in Mountain View, Calif., Which had sales of $ 182.5 billion last year, Google has built a huge banner and video business, thanks in large part to its central role on Android devices.