German watchdog: Google hinders competition by bundling automotive services
The German competition watchdog Bundeskartellamt has stated in the preliminary judgment of its antitrust investigation into Google Automotive that some parts of this operating system may hinder competition.
In particular, the fact that Google only offers its infotainment system services as a bundle according to the Federal Cartel Office objectionable. The watchdog states that this reduces the opportunity for competitors to offer their competing services individually. Google Automotive services include Google Maps, voice assistant Google Assistant and a modified version of the Google Play Store. In addition, the Android Automotive Operating System, on which the aforementioned services run, is also part of the bundle.
According to the watchdog, Google has agreements with car manufacturers about how these services should be presented in the infotainment system. For example, in some cases they must be set as default, or displayed before competing applications. According to the Federal Cartel Office, this can be seen as an obstacle to market access, because alternative services have so little chance of being noticed by users. The German watchdog states that Google has already strengthened its market position in smartphones in this way.
In addition, Google is said to have agreements with car manufacturers that allow Google Assistant to be integrated as the only voice assistant on the infotainment system. In return, automakers would get a share of the advertising revenue generated by Google Assistant. Google could also ban interoperability with third-party services altogether for other services, the market regulator said.
In the preliminary ruling, the German watchdog states that it is considering banning Google from implementing such barriers any longer. Google now has the opportunity to respond to the objections of the Federal Cartel Office. It is not stated when the watchdog will issue its final verdict.
Currently, cars from Renault, Volvo and Polestar, among others, use Google Automotive. This is different from Android Auto, by the way. The latter is Google’s version of Apple’s Carplay and allows users to connect their phone to the car.
The Google Automotive system in Polestar 2