TASS-FILE. 20 March 2019, the European Commission announced the imposition of a fine of €1,69 billion to Google Inc. The fine imposed in an antitrust trial contextual online advertising AdSence. The European side felt that Google in the years 2006-2016 violated antitrust rules by requiring sites along with the search box set Google AdSence and prohibited advertising through their competitors. Editorial from the guardian, the DOSSIER prepared material on anti-trust claims against Google.
Google owns the search engine Google launched in 1998. By 2003, this system has become the most popular in the world market, ahead of Yahoo!. 2015 is a holding company Alphabet. Google has repeatedly been involved in litigation over allegations of violations of copyrights, patents, as well as in the field of protection of personal data. The dominant position Google has also led to major competition processes in different countries.
A lawsuit in the United States about salary collusion
In the US, Google has paid a large fine in the case of salary agreement. 24 Sep 2010 the Antimonopoly office of the U.S. Department of justice filed a lawsuit in the court of the district of Columbia to corporations Google, Adobe, Apple, Pixar and other Companies were accused of collusion salary: according to the prosecution, they agreed among themselves not to poach employees directly to restrict the growth of salaries. In September 2012, the lawsuit was withdrawn after the Corporation agreed to end this practice.
4 may 2011 the district court for the Northern district of California had filed a class-action lawsuit from employees of Google, Intel and other companies in which they demanded large compensation, accusing employers to low wages because of the collusion. According to the verdict of the court of 9 July 2015, Google, Intel, Apple and Adobe have collectively paid to the plaintiffs $415 million
A lawsuit in the United States about pre-application
Another antitrust lawsuit against Google was filed in the U.S. district court for the Northern district of California. May 1, 2014 individuals — Gary Feitelson and Daniel McKee. They accused Google of pressure on manufacturers of smartphones, Samsung etc. with the purpose of the default installation of their applications and search engines, thus preventing free competition. February 20, 2015 the suit was dismissed by the court.
The Claim Of The European Commission
30 November 2010 antitrust case against Google was initiated by the European Commission. The formal charge against the company was made on 15 April 2015. In the opinion of the European Commission, Google has provided unjustified benefits to its affiliated companies that offer services on trade in goods, order of hotels, purchase of tickets. When the search requests to Google companies and products related to Internet company, get priority in the results and take the first row in the results. The amount of the fine, which threatened Google in the case, according to some estimates, could amount to $7 billion
27 June 2017, the European Commission fined the us company Google for a record sum of €2,42 billion ($2.68 billion) for abusing its dominant market position in search engines on the Internet. In addition, if within 90 days, Google did not eliminate the violations, the amount of additional payments will have to be up to 5% of daily turnover of its parent company.
From this claim in April 2016 has been allocated to two individual cases. The first was the Android operating system that Google is developing. The second advertising system AdSence.
18 July 2018, the European Commission fined Google a record €4.34 billion ($5 billion) because of the monopoly associated with Android. As reported by the European Commissioner for competition Margrethe Vestager, “Google has completely closed the Android system in a closed and fully controlled ecosystem”, obliging the manufacturers of Android devices to sell them only with a pre-installed native browser and search engines. The penalty is about 4% of annual revenue in 2017. Google appealed the decision of the European Commission on 10 October 2018.
The case against Google Inc. and Google Ireland Ltd. (Irish subsidiary of the Corporation) was filed by the Federal Antimonopoly service (FAS) of Russia on 20 February 2015 to claim the Internet company “Yandex”. The plaintiff complained that Google does not permit pre-application “Yandex” on mobile devices brands Fly, Explay and Prestigio. “Yandex” also demanded that the American company to abandon the mandatory binding of the Android operating system to the Google search engine.
14 September 2015, the FAS found the company Google violated the competition law (part 1 article 10 of the Federal law “On competition” — the “Abuse of dominance”). It was reported that the amount of the fine can range from 1% to 15% of Google revenue in the Russian market in 2014 (18 billion rubles).
The FAS gave Google an order to eliminate violations. In particular, it was necessary to adjust the contracts with producers of mobile devices, the deletion of agreements anti-competitive requirements that limit the installation of applications and services of other developers. According to the instruction, the American company was also required to notify all users of mobile devices on the Android OS about the possibility of deactivation of pre-installed Google services, change the search in the browser Google Chrome, install the alternative apps which functionality same services from Google Mobile Services.
In the fall of 2016, the Corporation has to inform the users about the possibility of a range of alternative applications, but has not stated that the agreements with the manufacturers adjusted. Thus, the requirement was not fully implemented. Google challenged the decision of FAS in the Moscow Arbitration court. February 5, 2016, the court drew “Yandex” as a third party in the case. At the request of Google, an administrative case was heard behind closed doors. March 14, 2016, the court rejected the claim of Google to the Antimonopoly office. The Corporation filed the complaint, but in August 2016 the court of appeal confirmed the first instance decision.
August 11, 2016, the FAS announced the fine for Google, requiring a Corporation to pay 438 million rubles (9% of its turnover on the Russian market for the year 2014 plus inflation). Later, in October 2016, for failure to fulfill the requirements fully and on time, the FAS has appointed Google Inc. and Google Ireland Ltd. additional fines of 500 thousand rubles each. 8 December 2016, the FAS filed a claim on compulsory execution of the decision in the case of the Android OS. Thus, the case was transferred to the area of criminal law. The head of Antimonopoly Department Igor Artemyev has noted that top executives of Google can be jailed for two years.
In January 2017, the Moscow Arbitration court registered the appeal of Google Inc. in a dispute about the legality of the two fines of 500 thousand rubles. In addition, 24 January 2017, the company Google in a dispute with the Federal Antimonopoly service filed a cassation appeal to the Supreme court of the Russian Federation.
February 28, 2017, the FAS reported that the American Corporation turned to her with a proposal to conclude a settlement agreement, the terms of which at that time was not discussed. 6 March 2017 the head of the FAS Igor Artemyev has informed journalists that the FAS started consulting with Google about the possibility of concluding such an agreement.
27 Mar 2017 Arbitration court of the Moscow district has postponed consideration of the underlying case, the FAS and Google on April 17. In late March the Deputy head of FAS Anatoly Golomolzin informed the media that the American Corporation agree to the proposed office of the basic principles of a settlement agreement (the company to comply with the decisions and prescriptions of FAS, as well as the adoption of measures to eliminate the violation and its consequences). The parties discussed the details of the settlement agreement. Google representatives said that working with FAS and “Yandex”, “to find a solution that will leave the choice to the user at each level of interaction with the Android ecosystem”.
April 17, 2017 Arbitration court of the Moscow district approved the amicable agreement between Google and the FAS. Google agreed to pay a fine in full size (438 million) with no penalties, as well as to develop a “selection box” search engine for the existing and future devices that use the Android operating system. In addition, Google entered into a FAS approved trade agreement with the Internet company “Yandex”, giving the latter more opportunities for search engine in Google Chrome.
The fine Google paid in may 2017.
Read more •••