Google’s European woes entered overdrive today with the news that Europe is to formally file charges against the Internet giant over anti-competitive practices relating to its Android operating system.
Europe’s commissioner for competition Margrethe Vestager held a press conference this morning to confirm what has been suspected for some time. At the same time, Vestager — using the Twitter for iPhone app — took to the social network to file a formal statement of objections against Google.
Statement of Objections to Google: It seems like you are abusing your dominant position by imposing restrictions on Andriod device makers.
— Margrethe Vestager (@vestager) April 20, 2016
Today’s news comes as little surprise, as earlier this week Vestager gave the strongest hint yet that Android was firmly in its crosshairs, saying:
Our concern is that by requiring phone makers and operators to pre-load a set of Google apps, rather than letting them decide for themselves which apps to load, Google might have cut off one of the main ways that new apps can reach customers.
For background, way back in May last year the European Commission (EC) formally accused Google of using its dominance to bias search results, after a four-year investigation. However, at the same time, the EC revealed it was launching a second probe into Android relating to the way it allegedly forces phonemakers to preinstall certain apps. The Commission said it would assess:
If, by entering into anticompetitive agreements and/or by abusing a possible dominant position, Google has illegally hindered the development and market access of rival mobile operating systems, mobile communication applications and services in the European Economic Area (EEA).
The crux of the complaint is that Google stymies competition by forcing manufacturers to bundle some Google apps, including Gmail, Google Search, and Google Play, on the phones. Google has long-argued that manufacturers are free to do as they please with Android, and are not forced to pre-install anything. And it is correct to a degree, but it’s not quite as simple as that. Android’s code is released under open-source license meaning anyone can use it — Amazon has done just that with its Kindle Fire tablets, creating an Android “fork” and bundling its own services with the tablet. But if a manufacturer wants to use Android and pre-install the aforementioned Google apps, it must do so as a whole suite — it can’t just offer Gmail and Google Maps, and omit Google Play and Google Search.
So far, so simple. But some of the concerns extend beyond that, and there have been allegations that Google actively pays mobile phone-makers to pre-install Google’s own apps and prevent them from using rivals, though the existence of such “contracts” is denied by Google.
There have been a number of complaints from various parties leading to today — back in 2014, a Portugal-based Android app store called Aptoide filed a complaint with E.U. regulators that said Google was abusing its position and was effectively forcing manufacturers to sidestep independent app stores in favor of Google Play. In the past, countless other companies have lodged complaints against Google and Android in Europe, including Nokia, Microsoft, and Oracle.
Earlier this year, Google lost an anti-monopoly appeal in Russia over the exact same issue. Local rival Yandex had filed a complaint with the Federal Antimonopoly Service (FAS), and the FAS — perhaps unsurprisingly — ruled in favor of the local company. A court-issued statement at the time suggested that Google would have to rewrite its contracts with manufacturers, and even pay a fine as per the initial FAS findings. And in the U.S., Google is facing a similar probe, though no formal inquiry has commenced as of yet.
As for the E.U., there is a long way to go, and Google won’t take this lying down. Google already has another antitrust case on the go in Europe regarding its dominance and control over its search engine, and that is showing little sign of being resolved after more than five years. It’s likely that the Android antitrust case will linger too, but despite substantial lobbying efforts, today’s move could signal the start of Android’s great unbundling.