LEVERAGING ANDROID FOR MARKET DOMINANCE

The European Commission has been on Google’s case long before US regulators woke up to the company’s anti-competitive behaviour. The Commission’s largest fine was €4.3bn in 2018, relating to the restrictions Google imposed on Android device manufacturers and mobile network operators.

According to the Commission, Google engaged in three practices that had the aim of cementing Google's dominant position in general internet search. The Commission decided it was illegal for Google to insist on the Chrome browser pre-install on all Android mobile devices. Also deemed illegal were Google payments to manufacturers for exclusive preinstallation of Google Search.

The Commission also ruled that Google participated in illegal obstruction of development and distribution of competing Android operating systems. Among the Commission’s findings was that between 2009 and 2014, Google increased the number of preinstalled Google apps that it required on Android devices from 12 to 30.

Though Google describes Android as a free, open-source mobile operating system, the recent US Congress probe found that Google has used Android to entrench and extend its dominance in a host of ways that undermine competition. The Justice Committee report commented: “These include Android Lockbox, a covert effort to track real-time data on the usage and engagement of third-party apps, some of which were Google’s competitors. Additionally, Google’s Play Store now functions as a gatekeeper, which Google is increasingly using to hike fees and favour its own apps.

“Overall, Android’s business practices reveal how Google has maintained its search dominance through relying on various contractual restrictions that blocked competition and through exploiting information asymmetries, rather than by competing on its merits.”

‘Google has made it more difficult for businesses to obtain organic traffic’

newspapers, depriving them of their ad revenue, and then also to sell high to small businesses who are very dependent on advertising on your platform. It sounds a bit like a stock market except unlike a stock market, there’s no regulation on your ad exchange market.”

Pichai responded by citing the sums that Google has paid to publishers, describing it as a low-margin business for Google that it pursues “because we want to help support publishers”.

The Justice Department complaint against Google is based on violations of US antitrust laws. According to Bill Barr: “If we let Google continue its anti-competitive ways, we will lose the next wave of innovators and Americans may never get to benefit from the ‘next Google’. The time has come to restore competition to this

vital industry.”

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