The European Commission is expanding its antitrust against Google. The US company had abused the dominance of its smartphone operating system Android detriment of users. This Brussels engages a central pillar of Google’s business model.
The EU competition watchdog increase pressure on Google and throw the US Internet company market abuse the dominant smartphone operating system Android. The competent Commissioner Margrethe Vestager called Google unambiguously to end business practices to the detriment of consumers and competitors with Android and threatened with a fine in the billions.
The Commission alleges that Google before, with the business policy in Android competition in hindering smart phone market. Bothers you, among other things the fact that manufacturers of Android devices necessarily the Google search and the web browser Google Chrome would preinstall integrated services of the Group. In addition, vendors of smartphones are prevented with Google services from simultaneously selling devices with modified versions of Android. And the Group offer manufacturers and mobile operators financial incentives that they pre-install only the Google search on the devices.
“The Commission is concerned that Google’s conduct was detrimental consumers by competition and innovation for Disabled were “, the European Commissioner Margrethe Vestager said on Wednesday in Brussels. “In Europe, you can be dominant – but we must not abuse its dominant market position.”
The USa throw the competent Commissioner Margrethe Vestager in return the right to take disproportionately US corporations targeted as recently ggen Apple, Google, Amazon and Qualcomm arose allegations of antitrust infringements or tax avoidance, according to a report of the FT.
the group contradicted the accusations and stressed its operating system promotes diversity in the mobile phone market. “Android has led to the emergence of a broad and especially sustainable economic ecosystem, based on open source software and open innovation,” said Google vice president Kent Walker.
Android is the most used smartphone system World. The Google Software brings more than 80 percent of the currently-sold computers phones to run. And in Europe to work with her, according to calculations by market researchers over two-thirds of smartphones that are currently in circulation.
Android is developed as an open open-source software at Google, the program code is accessible to all and equipment manufacturers provided free of charge. You can also produce Android devices complete without Google services and develop the operating system to your own taste – about Amazon makes it easy for its Kindle Fire tablets
If manufacturers but Google services such as maps or e. want to offer mail on their devices, they need to pre-install a package of eleven Apps by Internet Group on the devices that can not be deleted. The Internet company explains this requirement so that the various Google services need to exchange data with each other in order to be truly useful. But consumers could be turned to unlimited other providers Apps. Numbers do not the manufacturers for the use of Google Apps. Google makes money by advertising in the context of the app usage.
In Europe, the vast majority of smartphones are sold with pre-installed Google Apps. In China, where only a few services of Internet Group are available, however, dominated the Google free Android version.
If you want to sell devices with Google services, receives a voluntary, according to the group’s “anti -Fragmentierungs agreement “submitted. With it should be ensured that all apps run on all devices. But it also follows that providers who sign this agreement, may not sell devices with modified versions of Android as an operating system. At the same time, there are quite a few manufacturers that have devices with both Google services and without the offer.
With the “financial incentives” to the exclusive pre-installation of Google Search envisaged for such cases participation could to be meant advertising revenues.
the Commission considers that followed Google’s goal to expand its dominant position in the general Internet search using Android. “Our investigations so far suggest that Google allow its conduct to consumers a greater choice of mobile applications and services withholds (…)”, said Vestager
“The solution is simple: adjust this approach”., the commissioner said on the criticisms. “This is necessary in order to protect European consumers.”
The Authority had initiated a preliminary investigation on the competitive situation of Android a year ago. The Commission sent now in this case official objections to the US group. This may explain in detail to the concerns now. The Android-investigation is part of a larger EU proceedings against Google. The Commission extended the procedure also to the new group holding alphabet from whose part Google is since last year.
If the European competition authorities can prove their allegations and take a formal decision, the company can be fined up to ten percent of annual turnover. This framework is usually but not exhausted. Google generated sales of 74.5 billion last year. Then there were revenues of $ 500 million from other alphabet-parts.
The Android accusations are the next escalation step in the years-long antitrust case against the Internet giant. The Commission also takes the competition in search engines under the microscope and raises Google prior to prefer their own offers to the detriment of competitors in the shopping search.
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