EU charges Google with market abuse, to probe Android

BRUSSELS, Belgium (UPDATED) – The EU on Wednesday, April 15, formally charged Google with abusing its dominant position as Europe’s top search engine, laying the US Internet giant open to a massive fine of more than $6 billion.

 

The European Commission also said it would open a separate anti-trust investigation into Google’s Android operating system, which dominates the global mobile phone market.

 

The Commission, which polices EU competition policy, said it had sent a formal “Statement of Objections” to Google charging it with “systematically favouring its own comparison shopping product in its general search results pages.”

 

“The Commission’s preliminary view is that such conduct infringes EU anti-trust rules because it stifles competition and harms consumers,” a statement said.

 

The Commission said it would continue to examine three other areas of concern – copying of rivals’ web content, exclusive advertising regimes and undue restrictions on advertisers – identified in probes dating back to 2010.

Investigating Android

 

In a major development, it also announced it would investigate “Google’s conduct as regards the mobile operating system Android.”

 

“The investigation will focus on whether Google has entered into anti-competitive agreements or abused a possible dominant position in the field of operating systems, applications and services for smart mobile devices,” the statement said.

 

If found at fault under EU anti-trust rules, a company faces a fine of up to 10% of its annual sales — in Google’s case, $66 billion (62 billion euros) in 2014.

 

EU Competition Commissioner Margrethe Vestager said the aim was to ensure that “companies operating in Europe, wherever they may be based, do not artificially deny European consumers as wide a choice as possible or stifle innovation”.

 

“In the case of Google I am concerned that the company has given an unfair advantage to its own comparison shopping service, in breach of EU antitrust rules.”

 

Google has 10 weeks to reply on this count, but if the formal investigation finds the company in the wrong it would “face the legal consequences and change the way it does business in Europe,” Vestager said.

 

She said Android it is vital for Android to be open to all.

 

“Smartphones, tablets and similar devices play an increasing role in many people’s daily lives, and I want to make sure the markets in this area can flourish without anti-competitive constraints imposed by any company,” the competition commissioner said. – Rappler.com