The news of the European Commission's statement of objections (SO) to Google for unfair competition tactics is making the rounds around the world, as many believe it will mark the beginning of a long-term confrontation, with a potential high cost for the American technology giant, which is now officially in the European Commission's sights.
The accusations against Google are twofold: on the one hand, the Commission claims that the company has abused its extremely advantageous position in the search engine "arena" by displaying links of its choice in support of its price comparison service, and on the other hand, the Commission has launched an investigation into possible violations of antitrust law regarding its operating system, Android, with the aim of establishing whether anticompetitive agreements have been concluded or whether the company has also abused its position in the field of operating systems, applications and services for smartphones.
With Competition Commissioner Margrethe Vestager noting that Google has ten days to respond and adding that its activities are still under monitoring for other practices that its competitors have complained about, the "queen" of search engines showed its intentions through two publications on its official blog, in which for the first time the company directly and strongly points out competitors and their activities.
EUROPEAN COMMISSION
The Commission for Google
In the first, signed by Amit Singhal, senior vice president, Google Search, under the title "The Search for Harm", the company highlights, using Google Flight Search as an example, how much its ability to "answer searches instantly" makes users' lives easier and citing the opposition of online travel companies such as Expedia, Kayak and Travelocity to its acquisition of ITA (flight search provider) in 2010. "Four years later, it is clear that their claims of harm were untrue," it states.
Commenting on the Commission's move regarding the display and scoring of shopping results, the company argues that thanks to Google, the most widely used search engine, users can find information in many different ways, "and claims of harm, to the detriment of both consumers and competitors, have proven unfounded...in fact, users have more choices than ever before" and the publication continues - which is accompanied by a series of graphs - with reference to competing search engines (Bing, Yahoo, Quora, DuckDuckGo) and digital assistants, such as Apple's Siri and Microsoft's Cortana, as well as specialized services such as Amazon, Idealo, Le Guide, Ebay, etc.
“People are increasingly using social networking sites like Facebook, Pinterest and Twitter to find recommendations on where to eat, what to see or how to decorate their homes. When it comes to news, users often go straight to their favorite sites. For example, Bild and the Guardian get 85% of their traffic directly. Less than 10% comes from Google.” Also, reference is made to data as it emerges from the rise of mobile devices.
Google then argues that competition is “blooming” online, with companies like Yelp, Trip Advisor, etc. accusing the company of harming them with its practices, while their traffic, revenue and profits prove the opposite. As it argues, in the shopping sector, “where we have seen many complaints and where we understand that the Commission’s SO will focus,” it is “clear” that “there is enormous competition and that Google’s shopping results have not harmed competition” (a position it accompanies with relevant graphs).
In conclusion, it is emphasized that the company, with all due respect, strongly disagrees with the SO and looks forward to presenting its positions in the coming weeks.
The "defense" of Android
Regarding the Android operating system, in the second post, signed by Hiroshi Lockheimer, vice president of Engineering (Android), the genesis of Android arose due to the situation that prevailed before the rise of smartphones, in the era of feature phones, with many different platforms, which made it difficult to develop applications. "We hoped that by offering a great, free, open source operating system, we could foster innovation, encouraging manufacturers and developers to focus on what they do best.".
Then there is reference to the spread of smartphones and the “explosion” of the app ecosystem. “Android has been a key player in stimulating competition and choice, reducing prices and increasing options for everyone (there are over 18,000 different devices available today). And it’s not just phones, today people are building almost everything with Android, including tablets, watches, TVs, cars, and more. Some devices use Google services, some don’t.”.
“The Commission asked questions about our partnership agreements. It is important to remember that these are voluntary - you can use Android without Google - but they provide real benefits to Android users and the wider ecosystem.” Continuing, reference is made to anti-fragmentation agreements, for the operation of applications on a variety of devices, and it is underlined that in this context Android device manufacturers can compete with Apple, Microsoft and other ecosystems that come with similar baseline applications pre-installed. “And remember that these distribution agreements are not exclusive, and Android device manufacturers install their own applications, and applications from other companies. And, compared to Apple, there are far fewer pre-installed Google applications on Android devices than Apple applications on iOS devices.”
In conclusion, it is stated that “we are grateful for the success of Android and understand that with success comes scrutiny. But it is not only Google that has benefited from the success of Android… we look forward to discussing these issues in detail with the Commission in the coming months.”.
Source: naftemporiki.gr
