European Commission files complaint against Google over Android abuse of power

The European Commission has sent a ‘statement of objections’ to Google and parent company Alphabet. The company allegedly abused its dominant market position for search services by imposing restrictions on Android device manufacturers.

The case revolves around the fact that, according to the European Commission, Google is abusing its dominant position in the search engine market. The company does this by requiring smartphone and tablet makers to pre-install Google apps, such as Search and the Chrome browser, on their Android devices. The Commission also suspects Google that the company pays manufacturers large amounts for this exclusivity. The problem is that this limits consumer choice and makes it harder for new apps to reach the general public. In addition, the company would prevent manufacturers from offering devices with forks of Android.

The fact that Google has a dominant market position in Europe can partly be derived from Android’s market share. This amounted to 71 percent, according to figures published by research firm IDC last year. Apple’s iOS operating system, on the other hand, has a market share of about 24 percent. Under European law, it is assumed that a company has a dominant position on the relevant market from a market share of 50 percent. Google has a share of more than 90 percent of the search services market, said European Commissioner Margrethe Vestager during a press conference.

Several complaints about Google’s Android strategy have been submitted to the European Commission, including by the organization Fairsearch. This organization, which includes Oracle, Nokia and until recently Microsoft, has had Google in the spotlight for some time because the company would oppose competition in the field of search engines. In its complaint, the organization explains that Google allegedly misled manufacturers by presenting Android as an open source alternative to other mobile operating systems.

In reality, however, Google would offer two versions of Android, the aosp and a system that Fairsearch calls “Google Android.” The latter would the company offer to manufacturers and cause it to become increasingly closed, for example by implementing a Play Services layer that is not open source. Important apps would depend on this, so that other apps are increasingly dependent and, for example, do not work on other versions of Android, or forks. Almost all Android devices sold in Europe have the Play services on board.

Now that the complaint has been issued by the European Union, Google has the opportunity to respond to it and to gain insight into the file that has been built up. Thereafter, the European Commission can adjust or continue its complaints. The Commission then adopts a final decision, which may be subject to a fine. Its purpose is to punish and deter other companies. The fine can be up to ten percent of a company’s annual turnover.

It is unlikely that such a fine will be imposed, in the case of Google it would amount to 6.5 billion euros with annual sales of 74 billion dollars in 2015. The highest fine to date was imposed on Intel in 2009 and amounted to 1. 06 billion euros, or 4.5 percent of the company’s worldwide turnover. In addition to a fine, companies and citizens who have suffered damage as a result of Google’s conduct may file a claim against the company in their national courts. The illegality of the conduct is assumed on the basis of the decision of the European Commission.

In addition to the current procedure that started in April 2015, there are currently other cases against Google in the EU. For example, the European Commission has accused the company of favoring its own price comparison service in search results. Also on Wednesday, the media company News Corp. filed a complaint against Google for allegedly scraping the content of news stories without permission. In addition, there are more cases about advertisements and the Maps application.

In a blog post, Google responds in general terms to the European Commission’s accusation, claiming that the Android ecosystem is indeed open and stimulates innovation. A substantive response is still expected.