Google hit with record $6.7B Cdn antitrust fine by EU regulators

European Union regulators hit Googlewith a record 4.34-billion euro(nearly $6.7-billion Cdn)antitrust fine on Wednesday for using its Android mobileoperating system to squeeze out rivals.

The penalty is nearly double the previous record of 2.4billioneurosthat the U.S. tech company was ordered to paylast year over its online shopping search service.

The fine represents just over two weeks of revenue forGoogle parent Alphabet Inc. and would scarcely dent its cash reserves of $136 billion. But it could add to a brewing tradewar between Brussels and Washington.

"Google has used Android as a vehicle to cement thedominance of its search engine. These practices have denied rivals the chance to innovate and compete on the merits. Theyhave denied European consumers the benefits of effectivecompetition in the important mobile sphere," EUantitrust chief MargretheVestagersaid in astatement.

Google said it would appeal the fine.

Vestageralso ordered Google to halt anti-competitivepractices in contractual deals withsmartphonemakers and telecoms providers within 90 days or face additional penaltiesof up to 5 percent of parent Alphabet's average daily worldwideturnover.

The EU enforcer dismissed Google's argument of competitionfrom Apple, saying the iPhone maker was not a sufficient constraint because of its higher prices and switchingcosts for users.

Android, which runs about 80 per cent of the world'ssmartphones according to market research firm Strategy Analytics, is the most important case out of a trio of antitrustcases against Google.

Some major Android device makers, including Samsung, Sony, Lenovo and TCL, declined to comment on the EU case.

Lobbying group FairSearch, whose 2013 complaint triggeredthe EU investigation, welcomed the ruling.

A third EU case, which has not yet concluded, involvesGoogle's AdSense product. Competition authorities have said Google prevented third parties using its product from displayingsearch advertisements from Google's competitors.