Google yesterday failed to overturn a multi-billion fine imposed by the European Commission for unfairly promoting its search engine on people's phones.
The Telegraph says an EU court has upheld the earlier fine, which was levied after competition watchdogs concluded Google had breached competition laws.
Investigators found that the tech giant had unfairly forced smartphone makers such as Samsung and Sony to set Google as their phones' default internet search engine on devices that used Google's Android operating system.
In addition, Android handset makers also had to install Google Chrome as their devices' default web browser if they wanted to pre-install other apps such as the Google Play Store or Gmail.
In a judgement handed down yesterday, the General Court of the EU said Google had been "foreclosing its competitors to the detriment of consumers".
"At that time, which was crucial for the development of online search services from smart mobile devices, Google's abusive practices were damaging to its competitors," the court found.
"Moreover, it is clear from the internal documents and statements of Google on which the Commission relies that Google was fully aware of the effects of the practices challenged in the contested decision," the judgment continued.
Minor concession
In a minor concession to Google the EU's judges reduced the fine by around £200million from the Commission's original level of £3.7billion.
Google said it was "disappointed" that the court did not completely annul the EU Commission's decision.
"Android has created more choice for everyone, not less, and supports thousands of successful businesses in Europe and around the world," said the Silicon Valley-based company.
Yesterday's ruling can be appealed to the EU Court of Justice.
Dieter Paemen, a partner at law firm Clifford Chance, told the Telegraph the judgement was a "vindication" of the EU Commission's findings.
"This judgement will embolden the Commission in its efforts to enforce the Digital Markets Act, and that can't make Google happy," said Mr Paemen.
"The Commission now needs to turn its attention to seriously enforcing the remedies in the decision, but this is a positive outcome for consumers who stand a better chance of real choices on their mobile devices."
The case has echoes of the very first major EU competition law case involving the tech sector. In that long-running 1990s lawsuit, Microsoft was found to be infringing EU laws by bundling Internet Explorer with its Windows operating system.
FTSE 100
The UK's top share index, the FTSE 100, was up 33 points at 7,310 shortly after opening this morning, following yesterday's 108-point plunge.
Brent crude futures were 0.14% lower at $94.05 a barrel.
Companies reporting today
- Half-year results: Hilton Foods, Trainline