MILAN – Google is abusing its dominant position. The EU Commission for Competition, Margrethe Vestager does not mince words and points the finger at the American giant: “A year ago – he says – we announced the opening of an investigation into Google and Android , today we can say that its practices are contrary to European law in terms of free competition “. In fact for Brussels on Google behavior denies consumers a wide selection of apps and services and prevents innovation of the other competitors, in violation of EU rules.
The European Commission has so formalized her accusations after twelve months of investigations by putting in the viewfinder “restrictions” to manufacturers of smartphones and tablets and the mobile operators, to which the Mountain View giant requires pre-install its app “such as Google search.” According to Vestager , Google has “implemented a strategy on mobile devices to preserve and strengthen its dominance in the field of Internet research.” With the delivery of the ‘formal letter of objections’ the web giant will defend itself against accusations of the Commission, but if it does not arrive at an agreement, may have to cope with a penalty 10% of annual turnover (74.5 billion in 2015): “the remedy is simple – says the commissioner – Google needs to stop its practices.”
“our agreements with partners are entirely voluntary – anyone can use Android without Google. Try it – you can download the entire operating system for free, modify it as you want and build a phone. and big companies like Amazon do “Google reply.
The charges, however, do not stop at app. Google – writes the Commission – “appears to have prevented the search engines competitors to enter the market through mobile navigation devices and competing systems, which implies having placed limits of innovation in the broader field of mobile internet . ” “At this stage – is pressing Vestager – we think that Google consumers without a wider choice of applications and mobile services, and stifles innovation from other actors in violation of European competition.”
difficult for the moment to quantify the economic damage, but for Vestager the problem is “fairly in innovation limits resulting from the attitude of the search engine. And innovation is crucial to our economy. However we are not interested in defending signole the companies are American or European, our task is to ensure free competition. we preoccupiano when the giants, in any sector, abuse their dominant position. “
Brussels is obviously aware that the announcement will fuel new heavy controversy, even by politics on the eve of the new round of negotiations for the TTIP – the free trade treaty between the US and EU – but that is why the Commissioner recalls that the the competition rules apply to all businesses operating in the EU and that at this point “Google has the ability to dispel the doubts of the Committee”. But its still a critical position because smartphones and tablets represent more than half of global Internet traffic, and about 80% of ‘intelligent’ devices used in Europe and the world runs on Android (developed, in fact, by Google), whose license was sold to a third party manufacturers.
Brussels believes, therefore, that Google “has a dominant position in the market for general search services on the Internet, of the exploitation of the systems already smartphone the subject of a license and the online applications for the Android mobile operating system. ” The search engine will now twelve weeks of time to answer the charges of commission , but already made it known that “look forward to working with Brussels to explain the way in which the model is designed Android, adding that he believed that the business model keeps costs low producers and their high flexibility, while giving consumers unprecedented control of their mobile devices. “
of course, the accusation has risk one of the main items of income for Google which grossed about $ 11 billion from advertising sales on Android phones with Google apps like Maps, Search and Gmail. the investigation is still separated from the being on the commercial conduct for promoting its shopping service in Internet search to rivals expenses.
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