Record-breaking fine expected this week could put Google’s business model at stake

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European regulators are expected to hit Google with a multibillion fine on Tuesday or Wednesday, an announcement that’s being closely watched not because of the anticipated size of the penalty — Google basically prints money at this point, so it will be able to easily absorb the blow. What’s really at stake is whether the EU uses the fine to force changes in the way the search giant does business.

The penalty coming this week is a product of Google’s longstanding policy of requiring Android device makers to set Google’s own search and web browsers as the default offerings. European regulators could fine Google as much as $11 billion if they wanted to, but while the fine is not expected to be that high, it is expected to top last year’s $2.72 billion antitrust penalty against Google for unfairly ranking its comparison-shopping service over similar offerings from rivals in search results.

The reason this week’s fine will likely surpass that amount is because the the probe that brought regulators to this point was much more expansive. At issue are the rules Google binds phone makers to if they want to use the company’s Android operating system, and how far European regulators might want to go in possibly forcing Google to level the playing field. Making it easier for smartphone makers, in other words, to choose what apps they want to pre-install on devices.

In a blog post, Google general counsel Kent Walker defended the company’s position by explaining that distributing products like Google Search together with its Google Play app store “permits us to offer our entire suite for free — as opposed to, for example, charging upfront licensing fees. This free distribution is an efficient solution for everyone — it lowers prices for phone makers and consumers, while still letting us sustain our substantial investment in Android and Play.” – READ MORE

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A new book about Google’s early company culture contains anecdotes that allege Google cofounder Sergey Brin was a “playboy” among female employees.

An excerpt published in Vanity Fair claims that Google’s culture was once a sexually-fraught environment, in which company cofounder Sergey Brin was once widely regarded as “the Google playboy.”

“[Brin] was known for getting his fingers caught in the cookie jar with employees that worked for the company in the masseuse room,” Charlie Ayers, a former executive chef for the company, recalls. “He got around.”

When the company’s HR raised eyebrows at Brin’s sexual conquests, Ayers says Brin had suggested he was entitled to engage with his employees in whatever manner he saw fit.

“HR told me that Sergey’s response to it was, ‘Why not? They’re my employees,'” said Ayers. “But you don’t have employees for f—–g! That’s not what the job is.”

Cairn, too, said that she found Brin’s exploits to be troubling: “Oh my God: This is a sexual harassment claim waiting to happen! That was my concern,” she said. – READ MORE

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