Google-Parent, Alphabet Inc. Forced To Respond To Changes Suggested By The EU Or Get Fined For Violating Antitrust Rules

By C. See - 06 Oct '16 04:02AM
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Google's parent company, Alphabet Inc. is being forced by the European Union's division for regulating competition to change some of its business practices. The tech giant has up until Oct. 31 to respond, or face penalties regarding alleged violation of antitrust rules.

Alphabet Inc. has been accused of violating the EU-imposed rules against monopoly, as well as abusing its dominance over its market. Google has significant claim over searches shares at about 90 percent since 2009 on mobile devices in most of the countries under the European Economic Area, The Wall Street Journal reported.

The European Commission had been known to look into Google's business operations for at least five years. Its apparent dominance over the search engine market had prompted EU's executive body over concerns of abuse of power, and even monopoly.

The EU executive body had given the Silicon Valley-based company an Oct. 31 deadline to provide evidence whether it may or may not have been abusing its power to block out competitors.

The charges stem from Google's influence over Android mobile devices, which raised concerns whether the technological giant is deliberately blocking competitors' from reaching its users, according to Reuters.

Alphabet is being accused of intentionally harming consumers' relationship with other technological companies by requiring Android users to use pre-installed Google apps such as Chrome, as well as Google's search engine.

The Oct. 31 deadline is at its fourth extension, although it has been for only the Android case. The newly imposed deadlines for other related cases are Oct. 26, and Oct. 13, of which are cases related to online advertising and sales.

The extensions had been granted by the EU following Google's request for additional time to fully assess, and review the charges' documents. The commission had deemed the request valid, and effectively allowing the defendant to "exercise its rights of defence."

Google can potentially be hit by a $7-billion fine if the commission finds sufficient evidence that the U.S. tech company is guilty of harming its competitors with "unhealthy" business practice.

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