14 DAY TRIAL // It was bound to happen, and now it has. The European Commission (EU) has officially accused Google of abusing its dominant position while services are concerned in Europe. On top of that, an antitrust probe into its Android mobile operating system has also been ushered.
Google seems to be in big trouble, and these charges could potentially force the company to change the way it has been doing business, as well as pay fines of up to $6.4 / €6 billion, or approximately 10% of its global revenue of last year.
In a statement, Competitor Commissioner Margrethe Vestager said that the US-based technology giant was sent a Statement of Objections, but we can call it a charge sheet, to which Google has already issued a response.
“In the case of Google I am concerned that the company has given an unfair advantage of its own comparison shopping service, in breach of EU antitrust rules. Google now has the opportunity to convince the Commission of the contrary. However, if the investigation confirmed our concerns, Google would have to face the legal consequence and change the way it does business in Europe,” reads the statement.
The investigation will focus on two main areas
The inquiry will reportedly focus on the distribution terms for Google’s suite of apps and the compatibility tests to become an official version of Android-carrying Google apps.
There are a lot of device manufacturers that use Google’s operating system in combination with a range of Google proprietary services and applications. But in order to earn this right, phone makers must enter an agreement with the search giant.
And it appears that Google has been making things increasingly difficult for device makers to access rival mobile operating systems, applications and services, thus limiting choice.
This is the first significant antitrust case brought by the Commission since Microsoft was ordered to pay a record fine of $613 / €579 million in 2004 after a massive investigation which latest for 11 years.
The current charges will bring about a five-year investigation into Google’s business practices in Europe, where it has a market share of over 90% for search.
Back in February, we told you that Russian search engine Yandex had filed a complaint in which it highlighted the fact that the tech giant forced device manufacturers to make Google the default search engine, in order to be granted access to Google Play.
Google's answer
Google issued an official statement denying all the accusations, while arguing that Google is an open-source platform that encourages competition.
The search giant makes it a point to highlight that handset makers, carriers and customers can go ahead and decide how to use Android and which applications they want to have installed on board.
Google also shows it has nothing against competition. Apps that compete directly with its services, like Facebook, Amazon, and Microsoft Office, can be downloaded from the Google Play store by anyone with an Android device.
Furthermore, developers working to produce Android apps have never been forced to pledge their allegiance to a single operating system, so most develop simultaneously for different operating systems.
In conclusion, Google says that it’s not the only one benefiting from Android’s success. Developers get to build successful businesses and consumers are faced with a wide choice even on low-end devices.
But will all these arguments manage to persuade the European Commission that Google is spotless?