Google Mandatory To Pay Rp61.4 Trillion For Losing A Fight Against The European Union

JAKARTA - Google this year suffered a lot of losses, because the European Union General Court has just confirmed the decision that Google's parent company, Alphabet, violates competition rules or antitrust.

The company was fined $4.12 billion for IDR 61.4 trillion for using the Android mobile operating system to beat its rivals starting in 2015.

"General Courts emphasize largely the European Union Commission's decision that Google imposes unlawful restrictions on Android mobile device manufacturers and mobile network operators to consolidate the dominant position of its search engine," the court said.

The European Union Commission in its 2018 decision said Google was leveraging Android to strengthen its dominance in general internet search, through payments to large manufacturers and cellular network operators and restrictions.

Therefore, the European Union Commission took action against Big Tech with a total fine of 8.25 billion euros equivalent to IDR 122 trillion in three investigations carried out over more than a decade to ensure the level of play in 27 EU countries.

However, Google says its companies act like countless other businesses and payments and such agreements help keep Android a free operating system.

"We are disappointed that the Court did not overturn the full decision. Android has created more choices for everyone, no less, and supported thousands of successful businesses in Europe and around the world," Google told CNBC International, Thursday, September 15.

About 80 percent of Europeans use Android, but Google claims to provide unfair profits to its apps like Chrome and Search, by forcing smartphone makers to first install it in a bundle with its app store, Google Play.

Google argues Android is competing with Apple, which is also using its iOS operating system, but Android allows consumers to choose mobile phone makers, mobile network operators, and opportunities to remove Google apps and install others.

This means that Google's business model only focuses on increasing the number of users of online search services so that they can sell online advertising services, while Apple focuses on selling high-end smart mobile devices.