Google set to get whacked by European Commission in Android anti-trust case

Big fine and a ban on paying financial incentives to OEMs on the cards for Google

Internet giant Google is set to get whacked with a large fine and faces other restrictions imposed by European Union competition authorities investigating allegations of anti-trust behaviour.

These sanctions will reportedly include banning Google from paying financial incentives to handset manufacturers that pre-install the Google Play store app and Google Search onto Android devices - the key apps that enable the company to make the open-source operating system pay.

On top of that, the European Commission is set to impose a hefty fine on the company too.

The Commission has been investigating Google over a variety of anti-trust issues in recent years.

The latest complaint, over Android, was instigated in April after the Commission received a complaint from lobbying group FairSearch. Backed by Google's rivals, it claims it wants to see laws preventing anti-competitive behaviour affecting consumers rigorously enforced. Members of FairSearch include Nokia, Oracle and TripAdvisor.

The Commission sent its Statement of Objections to the complainants - the lobbying group - last week for feedback. Reuters obtained a copy of the 150-page document, which reveals the Commission's plan to stop Google giving payments or discounts to mobile phone manufacturers in return for pre-installing the Play store and Google Search apps.

The Commission also wants to prevent Google forcing smartphone makers to pre-install the company's proprietary apps if this restricts their ability to use competing operating systems based on Android.

The document said that Google "cannot punish or threaten" companies for not complying with its conditions, and that the company could face a "large fine" due to the anti-competitive practices that, it claims, started in January 2011, and are still going on.

This fine would be based on the revenue Google generated from AdWord clicks in Europe, Google Search product queries, Play store apps purchases and AdMob's in-app advertisements.

"The European Commission intends to set the fine at a level that will be sufficient to ensure deterrence," the Commission document explained.

In a statement, Google said: "We look forward to showing the European Commission that we've designed the Android model in a way that's good for competition and consumers, and supports innovation across the region."

A separate document, also seen by Reuters, suggests that the Commission could also fine Google in its investigation into the firm's allegedly anti-competitive Google Shopping business.

Additionally, Google could be forced to rank rival shopping services as equally as its own service.