The European Union has formally charged Google with cheating competitors by distorting internet search results to advantage its Google Shopping service. The EU has also launched an investigation into Android.
No ad to show here.
The EU accuses Google of “systematic favourable treatment to its comparison shopping product (currently called ‘Google Shopping’) in its general search results pages, e.g. by showing Google Shopping more prominently on the screen.”
Though EU formally launched the charges today, it has been under pressure to investigate Google for some time. In a statement released today, the EU said that it has sent Google a statement of objections, a charge sheet, which Google can respond to within ten weeks and to then seek a formal hearing.
This the EU says may “therefore artificially divert traffic from rival comparison shopping services and hinder their ability to compete on the market.”
The concern of the EU is that users do not see the most relevant results in response to queries but rather see what Google wants to promote.
The EU further says in the statement that it has formally opened a separate antitrust investigation into Google’s conduct as regards to its mobile operating system, Android. The investigation, it says, will focus on finding out 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.
Read more: Rise of the Android: 1 billion devices shipped in 2014
Google has replied to the accusations in a statement, pointing out that, Android is open-source and can be used free of charge by anyone. Hiroshi Lockheimer, VP of Engineering, Android states that
“Android has been a key player in spurring this competition and choice, lowering prices and increasing choice for everyone.”
As Google rightly points out though, it’s a little strange that Android is being targeted and not iOS.
“Android devices compete with Apple, Microsoft and other mobile ecosystems that come preloaded with similar baseline apps. And in comparison to Apple—the world’s most profitable (mobile) phone company—there are far fewer Google apps pre-installed on Android phones than Apple apps on iOS devices.”
Lockheimer, Android’s VP of Engineering, states in his statement that
“We understand that with success comes scrutiny. But it’s not just Google that has benefited from Android’s success. The Android model has let manufacturers compete on their unique innovations. Developers can reach huge audiences and build strong businesses. And consumers now have unprecedented choice at ever-lower prices. We look forward to discussing these issues in more detail with the European Commission over the months ahead.”
Google has not responded to the charges but it can bargain with the EU for a fine or an apology and promise not to do it again. Whether EU agrees to this is not yet known as the talks between the two have not gotten to this stage.
Update: Google has replied to the antitrust violations by publishing its search results, arguing that “In fact, people have more choice than ever before”. Full response here
