Google is set to go to court this week to appeal an antitrust order and the record $5 billion fine slapped against it by EU regulators. The outcome of the appeal is expected to be a precedent for potential cases against Google in the U.S., where it is also being investigated by regulators for the same issues.
During a scheduled five-day hearing with the bloc's General Court in Luxembourg, Google will need to prove that the antitrust order was wrongly imposed. The order had demanded that Google change its allegedly anti-competitive practice of requiring phone makers using its Android operating system to also use its other apps and services.
The decision Google is appealing is one of three decisions issued by courts against the company under EU antitrust chief Margrethe Vestager's campaign to reduce the dominance of U.S. tech giants. Under her campaign, Google has been fined a total of $9.6 billion through separate antitrust cases.
Analysts at the Imperial College in London said Google has to prove that its business practice isn't anti-competitive. If it fails to do so, the company could be hit with similar cases abroad.
The issue at the center of the case Google is appealing is its practice of forcing phone manufactures to preinstall its services and its browser and search apps. The requirement currently applies to all manufacturers that wish to license its Play Store app store.
EU regulators said Google's contract with phone manufacturers is a form of illegal restraint. Google argues that preventing it from making phone manufacturers use its other apps and services would undermine its ability to provide its Android operating system for free. The majority of mobile devices in the UK use the company's operating system.
Google generates most of its profits from its ads business, which is embedded into its apps and services. Last year, the company generates revenue of over $182.5 billion from its banner and video ads.
"Android has created more choice for everyone, not less, and supports thousands of successful businesses in Europe and around the world. This case isn't supported by the facts or the law," Google said ahead of the hearings this week.
