European Union charges Google with abusing Android dominance, threatens key money spinner for Alphabet Inc

By: |
Updated: April 20, 2016 3:23:19 PM

Google-Android case: European Union antitrust regulators accused Google on Wednesday of abusing the dominance of its Android mobile operating system in deals with phone makers and mobile network operators following a year-long investigation.

Google, Google Android, Google android operating system, gmail, Google android os, android, android os, Google uropean union, google eu, European Union, European, Google competition case, google android competition case, EU google, google rigging market, Google market riggedGoogle-Android case: The charge could jeopardise a key money-spinner for Google, a unit of holding company Alphabet Inc. The tech giant made about billion from ad sales on Android phones with Google apps such as Maps, Search and Gmail last year. (Reuters)

European Union antitrust regulators accused Google on Wednesday of abusing the dominance of its Android mobile operating system in deals with phone makers and mobile network operators following a year-long investigation.

“A competitive mobile Internet sector is increasingly important for consumers and businesses in Europe. Based on our investigation thus far, we believe that Google’s behaviour denies consumers a wider choice of mobile apps and services and stands in the way of innovation by other players,” European Competition Commissioner Margrethe Vestager said in a statement.

The charge could jeopardise a key money-spinner for Google, a unit of holding company Alphabet Inc. The tech giant made about $11 billion from ad sales on Android phones with Google apps such as Maps, Search and Gmail last year.

Google is already under scrutiny for promoting its own shopping service in Internet searches at the expense of rivals. That case, which has dragged on since late 2010, culminated last year with the European Commission hitting the company with antitrust charges.

TIMELINE – Google wins some, loses some in global antitrust battles

For more than a decade, Internet search and advertising giant Google, now a unit of holding company Alphabet Inc, has sparred with competitors in an expanding range of industries from Internet to media to telecoms to automobiles.

It has also battled with judges and regulators.

After fending off charges of anti-competitive behaviour for many years, the Silicon Valley company has, since 2014, seen the tide swing against it in several antitrust cases worldwide.

On Tuesday, Canada’s Competition Commission closed an inquiry into Google’s search and advertising practices dating from 2013.

The European Competition Commission is expected on Wednesday to charge Google with anti-competitive charges concerning its Android mobile phone operating system, two people familiar with the matter said.

A timeline of Google competition cases follows:

2007 – USA – Competitors and consumer groups push U.S. Federal Trade Commission to investigate Google’s acquisition of online display advertising firm DoubleClick. FTC signs off on deal but warns it will monitor Google closely for anticompetitive practices.

2008 – USA – Google and Yahoo abandon pact to run Google search ads on Yahoo sites after U.S. Justice Department moved to block deal saying the two competitors would dominate online ad market.

2009-2010 – EUROPE – Rivals and industry trade groups file complaints against Google to a variety of national regulators in Europe, citing competition concerns.

2010 – EUROPE – European Commission launches formal antitrust probe of Google search business, which continues.

2013 – USA – The FTC drops a two-year antitrust probe of Google, concluding it has not manipulated search results to hurt rivals. Google had to agree to certain changes in search business practices in local search, advertising and with regard to licensing patent portfolio to mobile phone makers.

2013 – SOUTH KOREA – Korean Fair Trade Commission clears Google after two-year antitrust inquiry brought by local search rivals NHN (now Naver ) and Daum (now Kakao ), which dominate the country’s search market. The FTC finds the rival companies’ market share changed little despite Google’s pre-loading requirements for its apps on Android phones. Smartphone makers defend Google’s role in Android as saving them time and money.

2013 – BRAZIL – Brazilian antitrust watchdog CADE investigates whether Google unfairly scrapes the content from rival websites, discourages their advertisers and favours its own product listings in search results.

2013-2014 – EUROPE – Back and forth ensues between Google and EU over terms of a potential settlement that would have ended European Commission antitrust probe. Competitors complain Commission is letting off Google too easily. EU antitrust chief Joaquin Alumnia eventually admits resolution of Google search case unlikely before his term expires later in 2014.

2014 – EUROPE – Mounting anti-Google feeling among European politicians is reflected in the passage of a symbolic, non-binding resolution calling for the break-up of Google’s search engine business from the rest of the company. The motion, which does not mention Google explicitly by name, passes with 384 in favour to 174 votes against. https://bit.ly/22Kpkrs

2015 – EUROPE – New EU Antitrust Chief Margrethe Vestager charges Google with distorting its search results to favour its own shopping service over rivals. European Commission also says it is investigating Google’s Android business, “scraping” on rival’s Web content and various advertising issues.  https://reut.rs/1qVY5ya

2015 – INDIA – Competition Commission of India (CCI) concludes a three-year enquiry into Google’s paid search results. It accuses Google of abusing its dominant position in search in a report which has yet to be publicly released. CCI has received Google’s response but sets no timeline for a final decision. https://reut.rs/1NkjmLY

2015 – USA – The U.S. Federal Trade Commission opens a preliminary investigation into whether Google uses its Android operating system to dominate competitors as more consumers go mobile, sources told Reuters.

2015 – EUROPE – Russia’s anti-monopoly agency finds Google guilty of abusing its market position in the country by favouring its own apps on Android and requiring it to amend its contracts with smartphone makers. Google files a court appeal, which is rejected in March 2016.

2016 – CANADA – The Competition Bureau closes a three-year long investigation into Google’s online search business, saying it will take no action against the company. The Canadian watchdog says it found evidence to support one allegation that Google had made it hard for advertisers to compare Google ad rates to rivals, but says the company has already remedied the practice.

2016 – EUROPE – European Competition Commission is expected on Wednesday to charge Google with favouring its own apps on Android phones, sources tell Reuters. (Sources: Reuters, European Commission, U.S. Federal Trade Commission, FairSearch lobbying group)

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.