Business Insider

Google secretly tried to stop the probe into Android a year before its record $5 billion fine from the EU

Margrethe Vestager1
European Competition Commissioner Margrethe Vestager. Reuters
Read in app
  • Google secretly tried to settle with the European Commission a year before receiving a massive fine, Bloomberg reports.
  • The European Union's competition watchdog fined Google 4.3 billion euros ($5 billion) last week for abusing the dominance of its mobile operating system, Android.
  • Google lawyers reportedly started talking to EU counterparts about settling the Android probe in June 2017, after Google had been fined over its shopping service.

Google secretly tried to settle with the European Union's competition watchdog over the investigation into Google's Android operating system, Bloomberg reports.

The European Commission hit Google with a 4.3 billion euro ($5 billion) fine last week for abusing the dominance of its mobile operating system.

European Competition Commissioner Margrethe Vestager told Bloomberg that Google began trying to resolve the investigation a year before the fine was imposed.

Google lawyers talked to their EU counterparts about the possibility of a settlement in June 2017, Bloomberg says, weeks after the company had been fined 2.4 billion euros for abusing its dominant position to promote its shopping service.

The firm's lawyers were reportedly emboldened by a press conference on June 27 in which Vestager refused to rule out a settlement. Citing people familiar with the matter, Bloomberg reports that the lawyers drafted a letter in August with suggestions for addressing the EU's concerns.

Google reportedly offered to adjust contracts to loosen restrictions to which the EU objected. The letter did not go into detail, however, and just outlined starting points for discussion.

Vestager said Google waited at least a year too long to reach out. She said that if companies wished to settle, they needed to get in touch "immediately after" getting the EU's initial complaint or statement of objections.

"That didn't happen in this case and then, of course, it takes the route that it has now taken," Vestager told Bloomberg. Consequently, Google's lawyers never received a formal response, and the EU opted for a cease-and-desist letter.

"It's a very serious legal infringement, and you see how it has worked," Vestager added. "It has cemented Google's position in search, and it has de facto locked down Android in a completely Google-controlled ecosystem."

Business Insider has contacted Google for comment.

Read next

Isobel (she/her) was a senior tech reporter at Business Insider. She was particularly interested in Big Tech, privacy, and worker's rights. You can read some of her previous work here: The quest to find $181 million in bitcoin buried in a dump Exclusive: Amazon targeted military spouses in a pandemic recruitment drive. 2 of them say they ended up being paid 33% less than non-military coworkers. Exclusive: Amazon plans a pay cut of up to 23% for hourly workers who guide trucks in and out of its UK delivery stations Exclusive: Tesla's solar division asks employees to scour social media for complaints about both the company and Elon Musk, trying to get customers to delete their posts, former employees say A couple says their Tesla Solar panels caused relentless leaks that led to mold 10 times the healthy limit, $115,000 in damages, and a long-running legal battle Ghosted by Tesla: Customers say Tesla's ultrasleek, expensive Solar Roofs and panels come with nightmare customer service, often leaving them with unanswered calls and emails for months on end Amazon workers leading a historic push for unionization in Alabama describe midnight 'education' meetings, an unexpected mailbox, and streams of anti-union flyers as they go up against one of the world's most powerful companies 'It's a slap in the face': Amazon is handing out 'Thank you' t-shirts to warehouse workers as it cuts their hazard pay Investigation: Amazon warehouse employees speak out about the 'brutal' reality of working during the holidays, when 60-hour weeks are mandatory and ambulance calls are common The science behind Elon Musk's brain-chip company Neuralink Investigation: Instagram's new TV service recommended videos of potential child abuse