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The encyclopedia · Legal & Compliance · Strategic decision · 2018

Google forced Android makers to pre-install its search and paid €4.34B for the privilege

Google forced phone makers to pre-install Search and Chrome for Play Store access. The EC fined it €4.34B, upheld on final appeal in 2026.

Google (Alphabet) · 2018-07-18

What happened

Android’s market share made it the dominant mobile operating system outside Apple’s iOS, but Google faced a strategic problem: users who bought Android phones could choose a different search engine or browser, weakening Google’s core search advertising business. Google solved this by requiring manufacturers to pre-install Google Search and the Chrome browser as a condition for licensing the Google Play Store. Phone makers who wanted access to Android’s app ecosystem had no choice but to accept.

Google also paid large manufacturers and mobile network operators to exclusively pre-install Google Search, and prevented manufacturers from selling devices running competing forked versions of Android. The European Commission found that these three practices illegally cemented Google’s dominance in general internet search, violating Article 102 of the Treaty on the Functioning of the European Union.

On July 18, 2018, the EC fined Google a record €4.34 billion (£3.9B; $5B). Google was given 90 days to change its practices or face penalty payments of up to 5% of Alphabet’s average daily worldwide turnover. Google appealed, and in September 2022 the General Court upheld the decision but reduced the fine to €4.125 billion. In July 2026, the European Court of Justice dismissed Google’s final appeal.

Why it happened

  • Google chose a tying model that forced manufacturers to pre-install Google Search and Chrome as a condition for Play Store access, knowing it would exclude competitors.
  • Exclusivity payments to manufacturers and carriers made it financially impossible for phone makers to choose competing search engines, even if they wanted to.
  • Google used the threat of withholding app licenses to prevent manufacturers from selling devices running forked versions of Android that could host competing search services.
  • The company treated the antitrust risk as a calculated cost of doing business, preferring to pay fines rather than change a strategy that protected its search monopoly.
What it cost€4.34B fine; forced to change business modelcostly

The lesson

Abusing your platform power to protect a separate market is a gamble regulators will eventually call. Google paid €4.34B to learn what competitors had been saying for years.

Aftermath

Google ended the tying of Search and Chrome to Play Store licensing, stopped exclusivity payments for search pre-installation, and allowed manufacturers to sell devices with forked Android versions. The case established that dominant platform owners cannot use their app store leverage to protect a separate market. Google’s Android antitrust fine remains the largest EU competition penalty ever imposed.

Sources

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    Somewhere, someone solved the problem this company failed at. 2nd Opinion →