EU antitrust regulators are set to order Google to stop offering financial incentives to smartphone manufacturers that pre-install Google Search on their devices.
A document from the European Commission warned it could give Google a large fine due to its anti-competitive practices.
It accuses the search engine giant of shutting out competitors by incentivising manufacturers to install the Android OS onto their phones, and therefore making Google Search and the Google Play Store the defaults.
The European Commission would set a fine for these practices "at a level which will be sufficient to ensure deterrence", according to the document.
It says that the penalty could be based on revenue generated from Google Search product queries, Play Store apps purchases, AdWords clicks by European users and AdMob’s in-app advertisements.
"We look forward to showing the European Commission that we’ve designed the Android model in a way that's good for both competition and consumers, and supports innovation across the region," said a Google spokesperson.