EU regulators may tell Google to end financial incentives to smartphone makers

EU antitrust regulators intend to order Google to stop financial incentives to smartphone makers to pre-install Google Search exclusively on their devices and warned the company of a large fine, according to an EU document, Reuters reported.

The document, running into over 150 pages, was sent to complainants last week for feedback. The internet search company received a copy in April in which the EC accused it of using its dominant Android mobile operating system to keep rivals out.

In its charge sheet known as a statement of objections, the EU competition enforcer said it planned to tell the US technology giant to end payments or discounts to mobile phone manufacturers in return for pre-installing Google's Play Store with Google Search.

The regulators also seek to prevent Google from forcing smartphone makers to pre-install its proprietary apps if this restricted their ability to use competing operating systems based on Android.

The document seen by Reuters stated, Google: "cannot punish or threaten" companies for not complying with its conditions.

The Commission launched an investigation, after a complaint by lobby group, Fair Search, supported by companies that wanted to ensure they were not disadvantaged by search engine market dominance, in March 2013.

According to commentators, Google could face a large fine over anti-competitive practices, which started from January 2011, and were still ongoing, the document said.

Meanwhile, this month Google would may reject EU claims of abuse of dominance in search engines and mobile phones, increasing the stakes in a long-running battle with Brussels that could end up with the company being fined billions of dollars for the internet giant, The Telegraph reported.

The company was gearing up to respond within weeks to three separate charges of EU competition rule breaches in its online shopping service, Android smartphone software and advertising business.

According to commentators, Google's counter was the latest salvo in the EC's six-year investigation into the company and comes at a critical point with rising tensions between the US and Brussels.