EU Officially Goes After Google's Android On Antitrust Grounds
from the where's-the-beef? dept
This was widely expected, but the EU Commission, led by Competition Commissioner Margrethe Vestager, has officially announced that it's going after Google over some of its practices concerning Android. This comes just a day after Canadian antitrust officials went in the other direction, finding no evidence that Google's activities stifle competition. The EU has a few specific concerns about Android:The Commission's preliminary view is that Google has implemented a strategy on mobile devices to preserve and strengthen its dominance in general internet search. First, the practices mean that Google Search is pre-installed and set as the default, or exclusive, search service on most Android devices sold in Europe. Second, the practices appear to close off ways for rival search engines to access the market, via competing mobile browsers and operating systems. In addition, they also seem to harm consumers by stifling competition and restricting innovation in the wider mobile space.I definitely worry about monopolistic practices by incumbent players crowding out startups and innovation, so I was keen to dig in on the details here, but they seem oddly... lacking. I've noted in the past that the EU tends to view antitrust through a fairly different lens than the US does, and perhaps that's the issue here. This is a broad generalization, but for the most part, the US focuses on whether or not practices harm consumers. The EU tends to focus on whether or not a company is really big. I think the US standard makes a lot more sense.
Let's dig in to the specific complaints raised by the EU, saying each of these practices violated antitrust laws:
requiring manufacturers to pre-install Google Search and Google's Chrome browser and requiring them to set Google Search as default search service on their devices, as a condition to license certain Google proprietary apps;Many people have compared this to the case against Microsoft from the early 2000s, in which it got dinged for making Internet Explorer the default. Of course, a quick retort on that is: where is Internet Explorer in the browser market today? It's basically a non-entity, and it wasn't because of any antitrust penalties (which were basically wrist slaps). And, either way it appears that the issue here with Google is that it requires all of its core services to be bundled together: so if you want to offer the Google Play Store, then you have to also offer the other pieces of the Google app suite so that they work well together. But, of course, this also doesn't stop phone makers or service providers from adding their own apps as well. I now have a bloat-free Android phone running Cyanogenmod, but back when I had a Samsung S4 on Sprint, it came with a ton of bloatware from both Samsung and Sprint (and, frankly, all of it was useless and annoying).
Perhaps there's an issue with making Google search the default, but is anyone actually harmed by having Google's search as the (easily changed) default on an Android phone? It certainly seems like Apple's iOS ecosystem is a lot more restrictive. At least with Google you can route around Google's app store and sideload apps easily or use alternative app stores. I frequently use Amazon's app store, for example.
preventing manufacturers from selling smart mobile devices running on competing operating systems based on the Android open source code;This is the one prong (out of three) that at least seems worth investigating more. I can understand Google's position -- that if you're offering Google's suite of apps, you need to offer Google's version of Android to make sure everything works together well -- but this seems like an unnecessary condition for Google to include in those agreements. The simple fact is that most manufacturers are likely to want to go with a stock Android anyway, and just pile on their own customizations and bloatware. In most cases, there isn't going to be that much desire for manufacturers to use an Android fork. But, if they do... so what? I don't really understand why Google prevents manufacturers from choosing to offer different flavors of Android, but I'm also not sure that this is an antitrust issue.
giving financial incentives to manufacturers and mobile network operators on condition that they exclusively pre-install Google Search on their devices.This one probably confuses me the most. This is just a business deal for installing software on phones. For years, Google paid Mozilla to be its default search in Firefox, and then Yahoo outbid it to become the default. That's how business works. Google isn't leveraging its market position here -- it's just doing a deal. The EU claims that its issue is "not with financial incentives in general but with the conditions associated with Google's financial incentives, in particular with the condition that the financial incentive is not paid if any other search provider than Google Search is pre-installed on smart mobile devices." But... isn't that the nature of the deal? If you're doing a business deal to be the exclusive search provider, then, shouldn't you be the exclusive search provider?
It will obviously be worth watching how all of this plays out. The EU has made it clear for a while that it has it in for Google, so if I had to predict, this process won't go well for Google.
Frankly, if I were Google, I probably would have dropped a lot of the exclusivity requirements. I know they're in a race to see who will get access to the most data, but let the apps and services compete and see who wins out. Google's app ecosystem does well because it tends to be pretty good. Google could have avoided at least some of this fight by just trusting its own services to win out, rather than pushing for certain defaults and exclusivities. Some others have made this point as well:
I'm pretty sure Google can survive and come out the winner. The best of its products -- that ones that have the most users -- are excellent. People won't stop using Google Maps just because it isn't preinstalled on their phones. It's among the top 10 most downloaded applications in Apple's App Store because iPhone users often prefer it to Apple's own map software. Chrome is in the top 100 most downloaded apps even though it's impossible to change the default browser in iOS from Apple's Safari without "jailbreaking" the device to untether it from Apple support.But what Google should do, and what the EU should force it to do, are different questions. I'd much prefer that Google take a more open approach to these things, but I'm not convinced that we want bureaucrats deciding for the company exactly what Google's approach on the mobile phone should be.
Google's search engine, too, wouldn't be dominant if it didn't index more pages than competitors and produce better results. YouTube is a must-have app, while Google's cloud office services are free, unlike, say, Microsoft's, and they work just as well.
These are great, competitive products. They don't really need the extra push from restrictive deals between Google and phone manufacturers. Google's brand name is strong with those who buy Android phones, and, given a choice, they are likely to prefer Google products rather than spend time researching alternatives. The company may need to spend a bit more on advertising its products in a free-choice situation, but that won't break the bank because the apps are already hugely popular.
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Filed Under: android, antitrust, bundling, defaults, eu, eu commission, margrethe vestager
Companies: google
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'Easily' changed ?
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Re: 'Easily' changed ?
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The home-screen search widget was removable as per any other widget.
There is a hold-the-home-button access to Google Now (much like Siri or Cortana) which cannot be changed automatically, but when I asked "search for pancake recipes on DuckDuckGo" it did connect me with instructions to change my default Google Now search engine.
That's a thing neither Siri nor Cortana will do.
So I think while Android certainly has its faults, and I gripe about them constantly, it's not the worst of mobile OSes, especially in the regard of forcing search engines on people.
When I installed Mozilla Firefox for mobile, it asked me to swap out Google Now for Firefox Search -- which was locked into Yahoo without any available change. I had uninstall Firefox entirely to get Google Now again.
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AT&T S5
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I saw an argument on Slashdot that nicely summed up the European position:
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Sometimes it doesn't even take three generations. Take Apple, for example. It seems to be a binary thing: it's prosperous when acting as Steve Jobs's own private cult of personality, and directionless and impotent when he's not at the helm. Both times.
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That's true for social apps such as Facebook, but I don't see how the network effect has anything to do with services like gmail or google search.
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I dream of a time when you'll get your phone clean and install whatever you want just like PCs. Though that UEFI shit has got me pretty angry last time I had to deal with it.
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I think the closest to that is the Google phones, like the Nexus 6. Pure stock Android, with nothing added. There are a bunch of apps preloaded of course, things like email, gmail, google maps, play store, clock, calculator, browser. But I would consider it just the basics of what a typical user would want to start with.
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They can't, actually. The stock Android that Google makes doesn't do any of that -- the issue is that the manufacturers have taken Android and modified it to do that sort of thing.
Since Android is open source, Google has no power to tell them to stop directly. They might be able to leverage the use of the Android trademark or the Google apps to force different behavior, but that's not a quick fix.
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I don't recall being able to fork Windows or MacOS yet they don't seem to be getting the same attention.
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Seriously?
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Those are all Android based, not wholly separate operating systems. But maybe that's not what you meant.
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They're usually called ROMs, though that's not a very accurate term. More accurate would probably be "distributions".
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Dealing
How Google's business works is what the EU is questioning.
Google isn't leveraging its market position here
I don't see how it isn't.
-- it's just doing a deal.
Yes, it is most certainly dealing. How and what it is dealing are the issue. Ask a convicted drug dealer if "I was just doing a deal" is much of a defense.
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Re: Dealing
One of the points that the EU seems to think makes Google an unlawful monopoly is that they don't spend money at B, C or D either.
Would it be fair for you to spend $50 at store A, and then pay that same $50 (total $200) to B, C and D even though only A is giving you merchandise -- and then, only $50 worth?
If not, why should Google have to do that? That's how business works.
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That one actually feels to me like a legitimate antitrust issue. The rest really don't, though.
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This is fine, but preinstalling chrome isn't? Isn't safari also preinstalled (not that anyone uses it)? I'm beyond confused.
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I'm actually a bit confused about this on Android - there are options to totally replace pretty much every aspect of Android with 3rd party options - just because it comes pre-installed with Chrome and Google search doesn't mean the user can't replace them... I've done so on numerous devices. Most of these are even downloadable from Google's play store, but they offer easily sideloading and alternative app stores as well if one desires.
Samsung and other manufacturers have in the past provided their own replacements for some of the built-in android apps - but Google has improved their own offerings in each new release to the point where nobody wants to use anything besides the defaults.
In the grand scheme of things - the problem seems to be the licensing terms for manufacturers which is really more about trademarks and branding than anything else. Before Google started getting more stringent, various forks and flavors of "Android" were becoming a real problem. Manufacturers were creating deviations that claimed to be Android, but were very different, and in many cases abandoned by those manufacturers. This caused a huge fragmentation issue with Android, and made App compatibility a major issue as well as preventing proper security patches from being deployed.
Google recognized this problem, and received a LOT of bad press about it - thus forcing them to improve their licensing terms in an attempt to hold manufacturers to a higher standard. That did also include providing sane default apps that were secure, updated, and functional in order to prevent the fragmentation from devaluing the Android brand.
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If not, then I apologize for my confusion - I thought I had read somewhere that Apple was making this easier, but perhaps not. I don't use iOS devices, so I wouldn't know.
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Android and Google are synonymous in the same way that iPhone and iOS are. We are buying the device because of the OS.
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All of my "android" devices are running either rooted or 3rd party firmware (mostly CM).
If I could easily run 3rd party firmware on an iPhone, I would probably do so, as the hardware is pretty decent other than the shitty OS it comes with.
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I got my phones in all cases because it was "free." :)
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Google Play Services
Basically, Google has made Google Play Services a required part of a usable Android experience. As I understand it, Play Services provides easier interaction from app-to-OS and app-to-app. Widespread reliance by developers on Play Services means that the effort to port apps to competing app stores (such as Amazon's), has gone way up, and apps are less likely to appear in competing app stores. This makes the Google Play Store a must-have feature for an Android device.
Of course, if you want the Play Store or Play Services, you have to play by Google's rules and use the official version of Android. And bundle their other apps with prominent placement on the home screen.
It seems to me the implementation of Play Services is the clearest example of antitrust, in which Google uses it's dominance in one or more markets (OS, Android apps) to strongarm manufacturers into bundling and promoting other products or use OS versions they would not otherwise have chosen.
All those saying OEMs are free to create their own OS are being disingenuous. The whole reason antitrust comes into play is that Android and iOS are so entrenched and powerful that competition is nearly impossible. Google is the one who chose to open-source Android. They then used the dominance that gave them to implement proprietary services and restrictive contracts that leave manufacturers with little choice but to acquiesce to whatever contract demands Google makes.
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If you have a Windows device or an Apple device you're stuck with the respective stores, and they do not offer alternatives.
So there's a stronger case for their walled gardens.
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China would be the biggest rebuttal to your argument. Millions of Android devices sold, with more hardware diversity than western markets, and almost none have Google Play services?
Why? Because they're blocked by the Chinese government.
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The question is not whether alternatives exist at all. A company can be charged with antitrust without even being a monopoly, e.g.(Apple in the ebook pricing collusion case). One of the big no-no's in antitrust is using your monopoly strength in one market to artificially expand your products in other markets. The combination of issue 1 and 2 above is a pretty clear example of that. Google says that no company who sells a Google Play device can make any device that uses any "unapproved" version of Android - an exclusivity agreement that is questionable in itself. It then uses it's market dominance in the app store, OS and search markets to strong-arm manufacturers into accepting terms that expand the market for their other products. It is a requirement that an assortment of non-core Google apps be installed and included in a folder ON THE HOME SCREEN of any Google Play device. This includes such "critical" apps as as Play Books, Play Music, and other Google profit centers. If that's not antitrust, it's toeing awfully close to the line. It's a heck of a lot more flagrant than the abuses that MS got nailed for in the 90s.
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Android isn't some altruistic open source gift to the world, it's been a shrewdly calculated move to get first crack at searches, as voice search, as your mobile browsing data, your mobile location data, and so on. Android isn't free, it's just without apparent financial cost.
Forcing certain apps, making them the defaults, and allowing those apps to have free reign over your notification tray and such is critical to the android business model. It is also potentially an anti-trust issue.
It goes back to what I said when Alphabet came around. Google is trying very hard to be able to show that the units are broken up so that in this sort of situation, they can suggest that "android" people, "search" people, and "ad selling" people are three different businesses, not one combined force to push money to the bottom line. It's going to be a hard sell!
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Why not? You argued "Google has made Google Play Services a required part of a usable Android experience" and I showed you a country (the most populous in the world) where Android device customers do not consider Google Services required.
The problem is not lack of usable alternatives it's that most people prefer Google products, which isn't a problem at all, it's how markets function.
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Giant sucking sound to the East
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Google Restrictions on Manufacturers
http://www.theverge.com/2012/9/14/3335204/google-statement-acer-smartphone-launch-aliyun-android
IA NAL, but could this be considered anti-competitive? Is allowing Google to dictate what Android OS modifications can run be good?
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wait a minute....
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Remember Acer And Aliyun?
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Re: Remember Acer And Aliyun?
IOW: "You joined our club, you signed a contract, and then you broke the terms."
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