Google’s appeal against EU record £3.8bn fine begins – how did we get here?
Three years after receiving a record fine from the European Commission alongside an order to stop abusing its control of the Android operating system, Google is set to have its day in court.
Back in 2018 the company was fined €4.34bn (£3.8bn) for forcing phone makers to pre-install apps including Google Search and Chrome to the exclusion of other search engines and web browsers.
The fine was a fraction of the €116bn (£99bn) parent company Alphabet recorded in revenues that year, but the real cost to the company was the threat to its future income if smartphones landed in consumers’ hands without Google apps already installed.
Google’s five-day appeal against the decision is being heard at European Court of Justice in Luxembourg, where the company hopes to have the Commission’s decision annulled in its entirety.
A failure to do so could completely reshape the smartphone landscape, but other challenges targeting Google inside the US pose a far more significant risk to the company and could lead to the search giant being broken up into several smaller businesses.
Google’s appeal will be heard in Luxembourg from Monday
Breaking up monopolies
While there are an over-abundance of comparisons between the oil industry of the late 19th century and the tech industry of today, the slow movement of regulators is one of the most striking similarities.
It was in 1890 that US Congress passed a law to tackle the monopolies which had sprung up over the preceding half century, but it took more than three decades for that law to be used to break up Standard Oil, a company which by 1904 controlled more than 90% of oil production in America.
Standard Oil’s business excelled due to its innovations in refining oil, but also because the company had rapaciously acquired rivals and used its commercial heft to strike deals with railroad companies (themselves a target for early antitrust action) at discounted rates which the remaining oil businesses could not compete with.
In a landmark ruling in 1911, the US Supreme Court upheld that Standard Oil was an illegal monopoly and ordered it to be broken up into 34 independent companies. Though that power is not available to the European Commission, there is a growing movement in the US calling for similar actions to be taken against tech giants whom some believe are guilty of the same anticompetitive practices.
Standard Oil controlled more than 90% of US oil production at its height
Modern antitrust law
Google is a very different company to Standard Oil, but the alleged unfairness of its practices – using its control of Android to force phone manufacturers who want to include the Google Play app store on their phones to also pre-install Google Search and Chrome – follows the same model of undermining rivals.
The investigation into Google coercing phone manufacturers formally began in 2015, although the Commission made its first enquiries about the company’s practices in 2013 when an association of Google’s rivals calling itself FairSearch lodged a complaint against its business practices.
The ruling came three years later in 2018 and now, three years later, Google’s appeal has reached the European Court of Justice. Thomas Vinje, counsel to FairSearch and partner at law firm Clifford Chance, told Sky News he expected there could be another appeal after the hearing in Luxembourg.
“Antitrust enforcement is not, on its own at least, sufficiently robust, sufficiently effective, to be able to address these really extraordinary concerns. I’m not sure the world has ever faced a situation where there is such a concentration of power in such a central element of today’s economy, and antitrust law is not up to the task,” he said.
“That is largely because they’re complex cases,” Mr Vinje explained.
“They’re more complex than rail roads or oil distribution – I’m not saying those are simple – but the issues faced in Big Tech today are a hell of a lot more complicated. So there is a hell of a lot more room for obfuscation… and dragging things out.
“So by virtue of the completely appropriate rights that defendants have in these cases, the cases just take too long.”
The Commission accused Google of attempting to cement the dominance of Google Search
What is Google’s response and appeal?
Google, which claims the most popular search term on rival search engines such as Bing is the word “Google” itself and which controls more than 90% of the market for web searches, disputes the Commission’s arguments about its dominance, although that won’t feature prominently in its arguments next week.
In a news briefing ahead of the hearing, the company explained to journalists that it believes a lot has changed in the years since the Commission issued its decision.
Key to Google’s appeal is the argument that its control ensures Android is a platform which can run across millions of smart devices made by different manufacturers, increasing the economic benefits for developers – including rival web browser makers such as Opera, which is supporting Google’s appeal – and ultimately consumers.
Google will note that a revenue sharing agreement it had with phone manufacturers and mobile network operators, cited as an illegal contractual restriction by the Commission, ended in 2014.
The company also strongly disputes the way that the Commission calculated the €4.34bn (£3.8bn) fine, something the Commission said was “calculated on the basis of the value of Google’s revenue from search advertising services on Android devices” inside the European Economic Area.
The US Department of Justice has filed charges against Google
What is the threat in the US?
Even if Google succeeds in getting the Commission’s decision annulled or amended, it faces three more challenges in the US which are backed by severe powers to tackle monopolies.
The first complaint was filed last October in a case led by the Trump administration’s Department of Justice and joined by 11 states – though with apparent bipartisan support – charging Alphabet with “unlawfully maintaining monopolies in the markets for general search services”.
It followed a congressional report which accused Amazon, Apple, Facebook and Google of monopolising the digital market and recommended antitrust laws be used to break them up.
Two more cases were brought against Google in December.
One from the attorneys general of 35 states accuses the company of anticompetitive practices in order to retain its dominance in search, while another filed by the attorneys general from 10 states focuses on the company’s monopoly power in digital advertising markets.
Google has denied engaging in anticompetitive practices.
Bodycam footage showing prison officers fatally beating an inmate has been released by New York’s attorney general.
Prison officers at Marcy Correctional Facility in New York punched and kicked 43-year-old Robert Brooks repeatedly while he was handcuffed on an infirmary bed.
He died in hospital on 10 December, a day after the attack.
The incident has drawn outrage from political leaders and was condemned by the prison officers’ union as “incomprehensible”, according to Sky News’ partner newsroom NBC.
It is now being investigated by state attorney general Letitia James, who called the videos “shocking and disturbing” at a virtual news conference.
Prison officers attacked Robert Brooks while he was handcuffed. Pic: New York Attorney General Office
In the video, Mr Brooks is in handcuffs as he is carried into the infirmary by several prison guards.
They put him on the bed and begin repeatedly punching and kicking him.
He is pulled upright, where his bloodied face is visible on camera, and then yanked from the bed by his shirt collar and pushed up against a window.
One of the fourteen workers involved in the incident has resigned and the rest have been suspended without pay until the process to fire them is complete. The workers include correctional officers, sergeants and a prison nurse.
The officers had not activated their body cameras but they were still on and recorded in standby mode, without audio, during the attack.
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As a result of the incident, all officers will now need to have their cameras activated any time they are engaging directly with prisoners.
Mr Brooks’ family thanked officials for taking action “to hold officers accountable” in a statement this week.
“We cannot understand how this could have happened in the first place,” the family said. “No one should have to lose a family member this way.”
Robert Brooks, who died a day after being attacked by prison officers. Pic: Family handout
The attack happened before 9.30pm on 9 December in a medical exam room after Mr Brooks had been transferred from the Mohawk Correctional Facility to Marcy Correctional Facility.
An autopsy found “preliminary findings show concern for asphyxia due to compression of the neck as the cause of death, as well as the death being due to actions of another,” according to a state corrections office investigative report obtained by an affiliate of Sky News’ partner newsroom WKTV in Utica.
Mr Brooks had been behind bars since 2017 on a 12-year sentence for first-degree assault involving a longtime girlfriend.
Officials declined to say why he had been transferred to the Marcy Correctional Facility, a medium-security prison.
Last year, an independent prison oversight group called The Correctional Association of New York released a report on the Marcy Correctional Facility.
It noted complaints of “rampant” physical abuse by staff members, with 80% of incarcerated people reporting having witnessed or experienced abuse and nearly 70% reporting racial discrimination or bias.
In response to the video, the union that represents workers at the prison said: “What we witnessed is incomprehensible to say the least and is certainly not reflective of the great work that the vast majority of our membership conducts every day.”
It adding what transpired is the “opposite of everything [the union] and its membership stand for.”
The world’s best golfer has suffered a freak injury while cooking Christmas dinner, forcing him to undergo surgery.
Scottie Scheffler sustained a puncture wound after cutting the palm of his right hand on broken glass.
The world number one required surgery as small glass fragments remained in the palm after the accident.
The injury has forced him out of the first tournament of the season, next week’s The Sentry in Hawaii.
Pic: Reuters
But the 28-year-old has been told he will recover in three to four weeks, and he hopes to be back in action at The American Express tournament in California on 16 January.
Scheffler won an Olympic gold and seven PGA Tour titles in the last year and was recently named PGA Tour’s Player of the Year for a third season in a row.
In May, he was arrested by police during the US PGA Championship after he was accused of trying to drive around a traffic jam caused by a fatal accident.
Scheffler’s arrest became a major story at the US PGA Championship. Pic: Matt Stone-USA TODAY Sports via Reuters
Just hours later, he was released and allowed to return to Valhalla Golf Club in Kentucky to play his second round of the tournament.
Criminal charges against Scheffler were later dismissed due to a lack of evidence and a police officer who arrested him was disciplined for not having his bodycam on at the time of the incident.
The man accused of burning a woman to death on a New York subway train has been indicted on murder and arson charges.
Sebastian Zapeta is accused of setting a sleeping woman on fire and then fanning the flames with a shirt, which caused her to be engulfed by the blaze.
He allegedly sat on a platform at Brooklyn’s Coney Island station, opposite the stopped train, and watched as she burned to death.
Authorities are still working to identify the victim.
Zapeta, 33, has been charged with one count of first degree murder, two counts of second degree murder and one count of arson in the first degree.
After a brief hearing in which the indictment was announced, Brooklyn District Attorney Eric Gonzalez said: “This was a malicious deed. A sleeping, vulnerable woman on our subway system.”
Mr Gonzalez said police and medical examiners are using fingerprints and advanced DNA techniques to identify the victim, while also retracing her steps before the murder.
“Our hearts go out not only to this victim, but we know that there’s a family,” he said. “Just because someone appears to have been living in the situation of homelessness does not mean that there’s not going to be family devastated by the tragic way she lost her life.”
Officers patrol the platform where the woman died. Pic: AP
Zapeta was initially charged with murder and arson in a criminal complaint earlier this week.
Such filings are often a first step in the criminal process because all felony cases in New York require a grand jury indictment to proceed to trial, unless a defendant waives that requirement.
Zapeta was not present at the hearing. The most serious charge he is facing carries a maximum sentence of life in prison without parole and the indictment will be unsealed on 7 January.
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Zapeta is a Guatemalan who entered the US illegally having already been deported in 2018, officials say.
He was taken into custody last Sunday, after three children called 911 when they recognised him from an image shared by police.
During questioning, prosecutors say he claimed not to know what happened, and noted he consumes alcohol – but did identify himself in photos and videos showing the fire being lit.
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