24 November 2017
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Urvish Macwan

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Urvish Macwan - Hyperlink Infosystem

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How To Profit From Google EU Fine

08 November 2017  |  2141 views  |  0

The world knows that the European Union has fined Google a record breaking $2.7 billion in antitrust fines. The litigation has been going on for more than a decade and Google has lost yet again. The decision has some tremendous ramifications for how business will be done on line in Europe in the future.

An associated suit is winding its way through the European Commission. Experts expect that the EU will levy another record breaking fine against Google’s Android operating system. The basis for this action is similar to the antitrust action.

The European Union has been fighting for the right of smaller internet providers and phone service providers to have a share of the pie that Google has laid total claim to. The fines seem paltry to a company that is worth $665 billion. The fine against the Android system may be much more devastating to Google in terms of income.

A July 6.2017, report from Reuters suggest that Google is more concerned with adjustments that have to be made to the Android system to comply with the EU mandates than it is the fine. Google is expected to be forced to unbundle key parts of the Android system that gave the company a dominant share of the phone market in Europe.

Google has been closed mouthed about the fine and the impending decision about Android. The decision in Europe will produce opportunity. The way the Android scenario plays out in Europe could set the tone for litigation in other countries and further refinements in Google and Android.

The move by the European Union will in no way topple Google from its dominant position as the search engine of choice. Google will rapidly make up the financial loss. There will be a number of opportunities for small search engines, businesses, and app developers to benefit from Google’s problem.

These are some of the opportunities that are immediately apparent.

1) Google will hire

Google will hire dedicated developer to make the changes to their search engine and their artificial intelligence needed to comply with the European Union dictate. The hiring may be for the short term because the changes that need to be made are exactly defined by the judgment from the EU.

Google will in all likelihood look to Indian app developers to solve their Android problems. Indian app developers have a world renowned reputation for Android development that has made them one of the top three go to regions for app development.

2) Small net companies will hire

The little guys that brought the suit against Google see this decision as their opportunity to win big. The small net service companies can expand the services that they provide because the limits that the EU placed on Google allow their offerings to get higher placement in searches.

The income that will produce this change will not be immediate. The size of these companies will force them to hire dedicated developer for their web offerings and expand to include the services of Indian app developers.

3) Google cannot dictate to local business

This is possibly the most important change that will result from the EU decision against Google. Companies cannot pay Google for placement in Europe. This means that small businesses will actually have a chance to compete on a local level with huge multi-nationals.

This is a great advantage for small local businesses in Android phone searches. The phone search shows only three results per page. Before the decision a small business could not hope to be in the top three. The decision has forced Google to allow the little guy to have a chance if they are savvy enough to obey the demands that the EU still allows Google to impose.

4) International change

Many analysts expect the decision in Europe to impact other countries. China is a major target. Government restrictions on the internet in China produce a reduction in international trade to a huge market.

China may sue Google like the EU did. This could result in Google being forced to make a Google that fits China’s demands. International trade is good for China’s economy. Small businesses in China could reap the same benefits as small business in Europe.

The need for programming for the net and for Android will be huge if China forces Google to comply with China’s internet laws. The need for to hire dedicated developer and for Indian app developers could see unprecedented growth.

Google’s plan to portray Android as open source while bundling it with so many money making parts of other Google enterprises backfired in Europe. Bundling Google search and Chrome also added to the reasons Google lost in Europe. Using Android technology that prevented other phones from using a forked version of Android produced an anti-fragmentation agreement that will be implemented across Europe.

While many people hail the fine against Google as a victory and the expected decision about Android as another step in the right direction there are some potential problems. Google has developed very strong financial ties to many companies throughout the world. These companies cannot survive without Google functioning like it does now.

Some analysts predict that the number of clicks on artificial intelligence generated ads will be reduced due to the EU decision. The major change in Google philosophy that made the ads a person sees more in line with what they have previously viewed and searched for could be diminished.

Companies that depend on revenue from personalized ads will have to redefine their presentations and campaigns. Google may lose more money as these companies demand a new strategy from Google to produce the same results.

Some fear that user experience will suffer. The single click to a buy may become a thing of the past. Adding steps to the purchase process could deter the impulse buy. Price comparison sites may become limited in the companies they can access. The price comparison sites may even be blocked from some companies. This means the customer does not get the best deal.

Some analysts think that small companies may suffer because the larger number of clicks to purchase will eliminate competition. Phone purchases make up the majority of sales and convenience is a priority.

The decision has been made. One will have to wait and see how the game plays out. There is a guarantee that there is plenty of opportunity for Google, app developers, and companies that sell on the internet or through phones.

Timing is the key variable. Every group involved will have to pay close attention to the EU time frame and Google’s response so they get the most out of this extraordinary circumstance. This time everyone has a shot at making money with Google.

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Urvish Macwan is a Team Leader honing marketing strategy cum content crafter at Hyperlink Infosystem, a mobile app development company.

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