Which is a kind of silly decision on Google's part, because they have far and away the superior product and also the superior brand. Even if the option was given at setup, nearly everyone choosing to buy an Andriod phone would select google as the default search engine...
(I guess you could say that didn't see this coming, but the parallels with MSFT and IE are pretty hard to not see...)
The fine is going to hurt a lot more than any remedial action.