Google might face record fine in Android monopoly case

Google will be hit with a record European Union (EU) fine for using its Android smartphone system to fortify its search empire. The fine -- likely to be handed down on Tuesday or Wednesday -- is expected to eclipse the 2.1 bn pound monopoly abuse penalty Google paid last year over its internet shopping business, and escalates the war between Silicon Valley and Brussels, The Telegraph reported on Saturday.

The European Commission`s competition chief Margrethe Vestager has been investigating Google for three years over complaints the company illegally forces smartphone manufacturers to install its apps.

It gives its Android software to phone manufacturers for free, but binds them to "exclusivity agreements" that force them to install Google`s web browser and search engine if they use the Google Play app store, the report said.

Opponents claim that this constitutes abuse of Android`s 74 per cent share of the European smartphone market and harms rival search engines and browsers. 

Meanwhile, Google insists the agreements allow Android to remain free to manufacturers and help them compete against Apple.

The commission has the power to fine Google up to 10 per cent of its parent company Alphabet`s annual turnover, or 9.5 bn euro (8.4 bn pound).

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Although it is not expected to use the full extent of its powers, the fine is likely to be higher than the 2.4 bn euros Google was ordered to pay in June last year over claims it stuffed search results with its own shopping adverts, squeezing out price comparison services.

As well as the fine, Google is set to be ordered to break its agreements with phone manufacturers. This could mean more Android phones being sold without Google software installed, potentially boosting rival search engines and web browsers such as Microsoft`s Bing or Firefox.