A year after the European Commission started formal investigation into Google’s Android ecosystem, the company received today sent a formal “Statement of Objections” from the Commission. The starting point for the investigation includes what terms Google requires, inter alia, mobile providers who want to deliver Android devices with key Google applications, including Google Play, preinstalled.
In the formal notification informs the Commission Google about which objections the provisional has against the company, based on the investigation which is still ongoing. Stressing that the posting of the notice does not pre-empt the outcome of the investigation. A final assessment, the Commission will first take when the counterparty has defended himself.
Initially, Google may respond in writing on the notice and request an oral hearing in front of representatives of both the Commission and national competition authorities.
Search is central
the Commission’s preliminary view in this matter is that Google’s strategy for mobile devices is about preserving and enhancing the dominance company already has in the overall search market. Google Search is installed by default search app in most Android devices sold in Europe, which the Commission believes makes it difficult for rival search engines to access the market.
– A competitive sector of mobile Internet becomes increasingly important to consumers and businesses in Europe. Based on our investigations, we conclude provisionally that Google’s behavior deprives consumers a wider variety of mobile applications and services, as well as being denied access to other operators’ innovation, which is contrary to EU antitrust rules. These rules apply to all businesses that are active in Europe. Google now has the opportunity to respond to the Commission’s objections, says competition commissioner Margrethe Vestager in a statement.
According to the European Commission used Android on about 80 percent of all smart phones, at both global and European level. Within the EEA, Google has a market share of over 90 percent in areas such as Internet search systems, intelligent mobile operating license, as well as application stores for Android.
objections
The Commission considers that Google has infringed EU competition rules by:
- require manufacturers preinstall Google Search and Google Chrome, and requires them to make Google Search to standard search service on their devices, as a condition for giving license to certain of Google’s proprietary applications including Google Play.
- prevent producers in selling smart phones and tablets that use competing operating systems based on Android open source, by denying these preinstall including Google Play. The practice is called for anti fragmentation.
- give financial incentives to manufacturers and mobile network operators with the condition that they only preinstall one search app, Google Search, on their devices.
The Commission considers that this business practice will lead to further consolidation of the dominant position Google Search has of search on the web.
also browsers and other apps
the Commission is also concerned that this practice reduces the potential alternative mobile browsers have to compete against Chrome and prevent the development of operating systems based on Android open source code, as well as the opportunities that this would involve the development of new applications and services.
it is emphasized in the press release that this utretningen is separate and independent from the Commission’s formal report on other aspects of Google’s business practices within the EEA.
More details from the European Commission on today’s event can be found here.
Google responds
Google has a blog where the company writes that although it takes the European Commission’s objections seriously, as the company believes that its business model for Android helps keep hardware manufacturers’ costs low and their flexibility high, while it gives consumers unprecedented control over the mobile their device.
– Android has helped understands a Significantly – and, not least, a sustainable – ecosystem, based on open source software and open innovation. We look forward to working with the European Commission to demonstrate that Android is good for competition and good for consumers, writes Kent Walker, general counsel at Google.
case is updated with Google’s reactions.
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