The outcome of the European antitrust investigation concerning Android OS doesn’t look too good for Google. Google has been accused of breaching competition law as the company is said to be abusing its Android monopoly. Google may be facing a huge fine and this may change the way it operates in Europe.
Android OS is the most popular mobile operating system in the world with almost 80% marketshare in Europe. It’s dominance is being abused and Google is accused of forcing manufacturers to pre-install its services on smartphones. When licensing the operating system, Google requires smartphone manufacturers to include 11 core Google apps and these apps must be, at least, a swipe away from the homescreen. Users are not allowed to delete these apps as they are system applications.
Margrethe Vestager, head of competition policy at the European Commission said:
Based on our investigation thus far, we believe that Google’s behavior denies consumers a wider choice of mobile apps and services and stands in the way of innovation by other players, in breach of EU antitrust rules.
The commission has the right to fine a company up to 10% of its annual profit and considering what Google makes in a year, the fine could amount to $7 billion. The commission said in a press conference:
Dominant companies have a responsibility not to abuse their dominant position by restricting competition. Our preliminary view is that Google has abused its dominant position.
The Commission is concerned that Google’s behavior has harmed consumers by stifling competition and restricting innovation in the wider mobile space. The result of behavior is that search engines, operating systems and web browsers have not been able to compete on merit.In a post on its official blog, Google has defended its approach:
Any manufacturer can then choose to load the suite of Google apps to their device and freely add other apps as well. For example, phones today come loaded with scores of pre-installed apps (from Microsoft, Facebook, Amazon, Google, mobile carriers, and more).
Of course while Android is free for manufacturers to use, it’s costly to develop, improve, keep secure, and defend against patent suits. We provide Android for free, and offset our costs through the revenue we generate on our Google apps and services we distribute via Android.Google has 12 weeks to formally respond to the allegations.