Germany’s market watchdog, the Bundeskartellamt, has accused Google of blocking rivals in its in-car software.
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What’s behind the allegations?
The watchdog claims that Google’s bundle-or-nothing offer to car manufacturers for their infotainment systems could be anti-competitive. The competition authority argues that alternative map service providers are unable to access Google’s services, including location data, search function, and Street View. By maintaining vertical dominance in the mobile software market, Google could potentially harm its rivals.
The agency’s preliminary assessment suggests that Google’s strict terms of use for car manufacturers further restrict competition. This is not the first time Google has faced scrutiny for bundling, as the EU fined the company in 2018 for requiring Android smartphone makers to bundle Google apps and services. Andreas Mundt, head of the German competition agency, criticised Google for offering its services only as a bundle, limiting the chances for competitors to sell their services individually.
Meanwhile, the Bundeskartellamt is taking action under Section 19a GWB, allowing it to intervene early in sectors where individual companies have a “gatekeeper” function to prevent potential anti-competitive effects. In response, Google stated that there is significant competition in the connected car space, emphasising that car makers have various options for providing information and entertainment through Android Automotive.
The company also claimed that the use of Google Automotive Services is not mandatory for automakers using Android Automotive OS. Google intends to engage constructively with the Bundeskartellamt to address its concerns.
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Google’s troubles mount
Alphabet (Google’s parent company) faced attacks on all fronts last week. On Tuesday, 20th of June, the group was sued by Gannett. Gannett is a US-based publisher (“USA Today” is probably its best known asset). It claimed that “Google has carried out a sophisticated, anticompetitive, and deceptive scheme for well over a decade”.
Shares in Alphabet dropped to $120.55 on Wednesday, before partially recoverin g later in the week.
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