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Google has been fined a record €4.34bn for using its Android smartphone system to illegally boost its search engine.

The EU’s Competition Commissioner Margrethe Vestager is set to announce a 4.3-billion-euro ($5 billion) penalty against the US tech giant, according to Bloomberg News.

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The firm’s parent Alphabet has been given 90 days to change its business practices or face further penalties of up to 5% of its average daily turnover.

However, it has said it plans to appeal.

Google’s chief executive Sundar Pichai was pre-briefed about the decision by Vestager on Tuesday.

In a statement the regulator said Google had “denied European consumers the benefits of effective competition in the important mobile sphere.”

However, it believes the punishment is unjustified.

“Android has created more choice for everyone, not less. A vibrant ecosystem, rapid innovation and lower prices are classic hallmarks of robust competition.

“We will appeal the commission’s decision,” said a spokesman.