Search and Destroy: Did EU fine Google for illegal activity or just for being too successful?

For most of us, the term "search engine" means Google and only Google.

It wasn't always that way. There are others out there like Bing, Duck Duck Go and Dogpile. And in the days before Google there were a number of popular search engines like Webcrawler, Lycos and Alta Vista, some of which still survive in some form. But Google, which came on the scene in 1998, quickly dominated. Why? Well, most would say it was simply the best of the bunch. And still is.

But that's not what the European Union thinks.

This week the EU hit Google with a record $5 billion-that's billion with a "b"-fine for allegedly violating antitrust laws by making deals with smartphone makers to bundle their Android operating system search and Chrome browser apps with their products. That, the EU says, has unfairly helped Google gain dominance.

Additionally, the EU told Google to stop the practice within 90 days or get slapped with an additional fine of up to 5 percent of the parent company Alphabet's average daily revenue.

Apple has similar arrangements with manufacturers, but apparently the EU isn't as concerned, at least for now. While Apple is big in the U.S., Android is the most popular smartphone operating system worldwide by a large margin.

Google's CEO Sundar Pichai said the company would appeal. He also says the EU appears to be favoring competitor Apple in this ruling.

Interestingly enough, Microsoft came under the same scrutiny over bundling its software onto new computers. In 2016, the EU Court of Justice ruled "the sale of a computer equipped with pre-installed software does not in itself constitute an unfair commercial practice."

For whatever reason, it's a different matter with smartphones.

There are many in the U.S. and around the world who are worried that companies like Google, Amazon, Facebook and the like are getting too big, too dominant in our daily lives. We have had similar concerns. But what are the limits on such growth? Should there be any in a capitalist economic system? And is the EU going after Google for some unfair practice or because it's doing what other companies do with impunity but has simply gotten too big?

It's important to understand the differing philosophies. Here in the U.S., we equate the free market with limited government regulation. EU regulators believe just the opposite. To them, a free market can only exist with more scrutiny and regulation to "even" the playing field.

Which argument carries more water?

Right now, it depends on where you are doing business. But that means big U.S. companies will always have to be on their guard before doing business overseas. Current trade wars aside, maybe one day U.S. and EU officials can sit down and come up with a mutually acceptable compromise so companies can know what will fly in their major markets-and know the same rules apply to their competitors.

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