The Commission decision requires Google to bring its illegal conduct to an end in an effective manner within 90 days of the decision.
The commission has concluded that through these contractual restrictions, the tech giant has been able to cement its dominance "in the market for general internet search services, licensable smart mobile operating systems and app stores for the Android mobile operating system". She said that European Union antitrust laws put a "special responsibility" on dominant businesses, meaning they can not deny other companies the chance "to compete with them on merit". The Commission believes Google's mobile strategy has unfairly strengthened its dominance of internet searching.
Google said it would appeal.
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Under EU rules Google could have been fined up to 10 per cent of parent company Alphabet's annual revenue, which hit $110.9 billion in 2017.
The European Commission also hit Google with a separate antitrust penalty of $2.7 billion previous year, relating to violations in the way it presents shopping results in Google Search-a service with a market share in Europe of over 90%.
Google, which purchased Android in 2005, has denied any wrongdoing and plans to appeal the EU's ruling. The EU Commission has fined Google for illegal restrictions on Android smartphone makers and mobile network operators, which helped the company's search engine cement its dominant position further. If its business activities are too harshly constrained, the argument follows, Google might no longer be able to provide Android for free to handset makers. Regulators came out with a preliminary ruling in April 2016 in which they said Google had market shares exceeding 90 percent in most European countries in the realm of licensable mobile operating systems.
The firm has also claimed distributing Google Search and the Play store together had made it "keeps manufacturers' costs low and their flexibility high, while giving consumers unprecedented control of their mobile devices". "This harmed competition by significantly reducing their incentives to pre-install competing search apps", the EC said, but noted this practice ended in 2014. National competition authorities met earlier on Tuesday to agree on the fine, one person said.
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The fine will be announced during a press conference in Brussels at 1pm local time today (12pm BST/7pm ET).
Since then, Google has been fighting the case and it's now stuck in court.
Google blocked manufacturers from selling devices running any alternative versions of Android (otherwise known as "Android forks") not approved by the company. Google could be forced to open up Android, which would mean not forcing manufacturers to pre-install Google services including Chrome, YouTube and Google Maps.
Android is the most popular mobile software in the world.
Photos of the christening of Prince Louis - cute! - CBBC Newsround
The Duchess of Cambridge also appeared a blissful mother in a portrait shot, as she cradled the prince in her arms. This extra photo is attributed to photographer Matt Porteous on the Kensington Palace Twitter page.