JAKARTA - Google's Alphabet unit on Tuesday, September 28 said the deal they made with the Android phone maker was a win-win deal. They say the deal encourages fair competition and reject EU accusations that it is using carrot-and-stick tactics to cripple its rivals.

Google is speaking on the second day of a week-long trial as it tries to appeal in Europe's second highest court to overturn a 4.3 billion euro antitrust fine. They are also appealing an order by the European Commission to get Google to loosen the search engine's grip on Android devices.

Lawyers for Google and EU competition executives argued over the company's Mobile Application Distribution Agreements (MADAs) that require phone makers (OEMs) to pre-install the Google Search app and Chrome browser app in exchange for a free Google Play license.

"It is this licensing model that attracts OEMs to the Android platform, and which enables them to offer a consistent, high-quality user experience at the lowest possible price," Google attorney Alfonso Lamadrid told the General Court. "People use Google because they choose, not because they have to," he said.

EU commission lawyer Carlos Urraca Caviedes rejected the argument. He called the deal and other restrictions Google's carrot-and-stick policy towards phone makers.

"This helps Google ensure its competitors will not reach critical mass to challenge its dominance," he told the court.

He also said such a deal was unnecessary, given the market power of Google, the world's most popular internet search engine, and its significant number of users.

Urraca Caviedes said what Google was doing "goes beyond what it takes to develop and maintain the Android platform".

A verdict may come next year. The case is Google's T-604/18 vs the European Commission.


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