Google to Face Multibillion-Euro European Union Antitrust Fine

By Valentina Pop and Sam Schechner

BRUSSELS -- The European Union's antitrust watchdog is expected to find Alphabet Inc.'s Google illegally abused the dominance of its Android operating system for mobile phones, issuing a multibillion-euro fine and ordering changes to the company's Android-related business practices, people familiar with the matter said.

The European Commission, the bloc's executive arm, is expected to find that the California-based company's actions allegedly thwarted potential competitors in order to safeguard its mobile-advertising business.

The fine could surpass the EUR2.4 billion ($2.82 billion) that the EU levied against Google last year for abusing the dominance of its search engine to skew search results in favor of its own comparison-shopping service. But the penalty isn't likely to reach into the double-digit billions range, these people said. A third formal probe into Google's AdSense for Search advertising service is still under way.

The exact remedial actions Brussels will require weren't clear. The EU could order the company to change contracts Google signs with companies that make Android phones.

A Google spokesman declined to comment. Google, in the past, has denied the EU contentions. The Mountain View, Calif.-based company said phone makers pre-install plenty of rival services, and argue that Android has increased competition in the smartphone market, thereby lowering prices and benefiting consumers.

Write to Valentina Pop at valentina.pop@wsj.com and Sam Schechner at sam.schechner@wsj.com

(END) Dow Jones Newswires

July 10, 2018 15:43 ET (19:43 GMT)

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