EU's record fine for Google is anti-consumer and anti-innovation

In response to the EU's decision to fine Google €4.3bn for 'anti-competitive behaviour', Sam Dumitriu, Head of Research at the Adam Smith Institute, said:

“The European Commission’s decision to fine Google €4.3bn will make smartphones more expensive and make the market less competitive. Thanks to Android, it’s now possible to buy a new smartphone for under £50. Without it, smartphone makers would have to create their own or buy operating systems with the costs passed on to ordinary consumers. 

“Switching web browsers may have been too much for most Windows users in 2001, but in 2018 switching from pre-installed default apps is commonplace. After all, one billion WhatsApp users did it.

“Restricting Google’s ability to pre-install its own apps through agreements with manufacturers will reduce the incentive for Google to invest in and improve the Android platform. It could even lead Google to charge manufacturers upfront licensing fees to use the Google Play store. 

“It could even lead to an increasingly fragmented marketplace where app developers are forced to create multiple versions of each app, increasing costs for smaller players.”

Please get in touch with Sam Dumitriu (02072224995) to arrange an interview or further comment.