On Thursday, President Trump weighed in, tweeting out his criticism on the EU. "They truly have taken advantage of the USA, but not for long!" Alphabet risks additional penalties of up to 5 percent of average daily global revenue for non-compliance.
Cheered on by many who are concerned about Silicon Valley's dominance, Ms Vestager will not abandon her mission to tame the tech giants - and the likes of Google, Apple and Amazon will fiercely resist any regulation that they see as a threat to their lucrative business models. The decision ignores the fact that Android phones compete with iOS phones, something that 89 percent of respondents to the Commission's own market survey confirmed, ' argues chief executive Sundar Pichai in a blog post entitled Android has created more choice, not less.
Google has 90 days to either halt such anti-competitive practices with smartphone makers and telecoms providers or seek a delay of the order while it appeals.
The Commission decision concerns three specific types of contractual restrictions that Google has imposed on device manufacturers and mobile network operators. Trump has imposed tariffs on steel and aluminum imports from the EU and is considering levies against European automobiles sold in the U.S. He recently described the EU, which includes some of America's strongest allies, as a "foe" of the U.S. "Whether or not you like the result, this is law enforcement in Europe and we wouldn't like anyone interfering with law enforcement in the USA", said Gene Kimmelman, a Justice Department veteran now with advocacy group Public Knowledge.
The new penalty imposed on Google is nearly double the amount that the firm had been charged a year ago because of topping its shopping searches on search pages.More news: Hamas accepts ceasefire after massive Israeli strikes in Gaza
European Commission President Jean-Claude Juncker will meet Trump in Washington D.C. on the trade issue next week.
"We have to protect consumers and competition to make sure consumers get the best of fair competition", Vestager said.
"The reality is that as long as they're delivering great utility to their consumers, consumers will still use those platforms". Interestingly, the commission can penalize the firm at least ten percent of the revenue it makes yearly which stood at $110 billion previous year. Competition authorities have said Google prevented third parties using its product from displaying search advertisements from Google's competitors. Chrome, and not a Microsoft-developed program, is now the most popular browser on Windows. The U.S. imposed tariffs on European Union steel and aluminum this year, and the European Union responded with duties on American goods.
"If the U.S. would impose these vehicle tariffs that would be very unfortunate but we are preparing together with our member states a list of rebalancing measures as well", European Union trade chief Cecilia Malmstrom said on Thursday.