Google has accused European Union antitrust regulators of mishandling their investigation, which led to a record €4.3 billion ($4.5 billion) fine for allegedly abusing the market power of its Android ecosystem.
During an appeals hearing at the EU’s Court of Justice on Tuesday, Google’s lawyers criticized the European Commission for making “grave errors” and argued that Android’s success was due to innovation, not coercion.
The European Commission “punished Google for its superior merits, attractiveness and innovation,” Google lawyer Alfonso Lamadrid argued before judges at the Luxembourg-based court.
The Android fine is part of a series of EU penalties targeting Big Tech, which has sparked backlash from Silicon Valley executives.
These executives, in an effort to gain favor with President Donald Trump, have criticized the EU’s fines, with Trump recently calling them “a form of taxation.”
A final ruling in the Android case is expected in the coming months, following a non-binding opinion from a tribunal adviser.
The EU court’s decision could be crucial for the future of Google’s Android business model, which has offered free software in exchange for conditions imposed on mobile phone manufacturers.
The contracts sparked the commission’s ire in 2018, when the watchdog accused Google of three forms of illegal behavior that reinforced the dominance of its search engine, culminating in the record fine.
First, the EU argued that Google illegally required handset makers to pre-install the Google Search app and Chrome browser as a condition for licensing its Play Store, the marketplace for Android apps.
Second, it claimed that Google paid some large manufacturers and operators to exclusively pre-install the Google Search app.
Lastly, the EU accused Google of preventing manufacturers who wanted to pre-install apps from using alternative versions of Android that were not approved by the company.
EU lawyers strongly defended their decision on Tuesday, accusing Google of using a “carrots and sticks strategy” in its dealings with phone manufacturers.
