Wednesday 20 April 2016

European Commission sends Android Statement of Objections

The European Commission has issued a Statement of Objections to Google alleging abuse of dominance in the mobile phone operating market.  The Commission has accused Google of using restrictive licensing and giving preference to its own pre-installed applications that use the Android operating system.
The objections follow a year after the Commission launched an investigation which found that Google obliges manufacturers who wish to pre-install Google’s Play Store application store for Android to also pre-install Google Search as the default search engine for the devices and Google Chrome as their browser.  The Commission also found that Google granted significant financial incentives to large smartphone manufacturers on the condition that they pre-install Google Search.  The Commission believes that as a result of these practices rivals have been unable to compete on the merits.
Google has countered the Commission’s case by claiming that the Android operating system has helped to promote innovation based on open source software.   Google maintains that its practices do not exclude rivals from the market. 
Only yesterday an investigation by the Canadian Competition Bureau raising similar theories of harm was closed because the authority did not find sufficient evidence to establish that Google had used exclusionary terms in its contracts with advertisers.
Meanwhile Google faces a host of other antitrust investigations.  It is continuing to challenge the Statement of Objections sent by the Commission in April 2015 relating to abuse of dominance through the self-preference of Google’s own shopping sites.  Just this week News Corporation has lodged a complaint with the Commission alleging that Google discourages users from accessing its news content from the original source.

European Commission press release.  Antitrust: Commission sends Statement of Objections to Google on Android operating system and applications, Brussels, 20 April 2016

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