Brussels accuses Google of abuse of dominant position with Android – Le Monde

Le Monde | 20/04/2016 at 12:33 • Updated 20/04/2016 at 13:27 | By Cécile Ducourtieux (Brussels, European Office)

Confirming what had revealed Le Monde Tuesday 19 April, Margrethe Vestager, the European competition commissioner, announced Wednesday April 20, sending an indictment formally (a settlement of objections , “SO” in the Brussels jargon) against Android, the system Google operating, which equips 80% of smartphones in the world. The Commission suspects the US group to abuse of dominant position with this software layer used by hundreds of thousands of application developers

Read also:. Android in the sights of Brussels

• What reproach Brussels to Google?

at least three things. First, Google requires mobile manufacturers using Android as they pre-install the Google search engine the default on the machine, and the Chrome browser, in exchange for the ability to use the application store Google Play .

“The consequence is that we found that manufacturers and mobile operators to offer default retained another search engine than Google,” said M ^me Vestager Wednesday

Second reproach. Google, in Brussels, would prevent builders who want to offer Google Play and Google Search on their machines, install it a modified version of Android, “then that Android is an open software [that developers can modify at will] ” says M ^me Vestager.

Finally, Google uses financial incentives ‘significant’ operators and manufacturers who agree to install exclusively the Google search engine. According to M ^me Vestager:

“A competitive mobile Internet sector is of increasing importance to consumers and businesses in Europe. Our investigation leads us to the conclusion that the behavior of Google restricts consumer choice concerning applications and services, and slows down innovation, in breach of EU antitrust laws. These laws apply to all companies active in Europe. “

This step of the procedure, the” N “is nothing trivial. It means that the Commission has reached the end of its investigation and that it stands ready to take sanctions. Unless in his response, the offending company is sufficiently convincing arguments to dissuade him. Or that it proposes to compromise, which is always possible.

Google faces a heavy fine of up to 10% of its turnover for the party (mobile applications, operating system), or more than 7 billion euros, according to calculations of the Financial Times .

Brussels could also impose measures “corrective”. “In this case, it’s pretty obvious: it is necessary that these practices cease” said, without hesitation, M ^me Vestager Wednesday

Commission she has other complaints against Google?

Yes. The formal investigation was opened on Android it a year ago, on 15 April 2015, the day when M ^me Vestager announced sending a first indictment against Google Shopping, the shopping engine Google.

“the Commission has worked badly and slowly on the Google search engine, it is catching up with Android. It is not excluded that such a final decision on the operating system before the one on the shopping “, assures Jacques Lafitte, the consulting firm Avisa, specialist in Brussels in competition cases.

Read also: Brussels increases pressure on Google

In fact, according to our information, the Commission hardest part with Shopping with Android. If shopping engine, Google sent at the end of summer 2015, a particularly reasoned response.

The Commission, before moving to the final stage of the sanction must successfully demonstrate that the US group manipulates its search algorithm to handicap other shopping services online. No simple: these algorithms are secret, and deemed particularly complex

• How Google defends it

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Google now has “the opportunity to respond to the Commission ‘ said M ^me Vestager. A US group spokesman told the World Tuesday “Everybody can use Android, with or without Google applications. Hardware manufacturers and telecom operators can decide how to use Android, and customers have the final say on the applications they want or to use on their machines. We continue to discuss with the European Commission. “

According to a Brussels source, the indictment against Android would be ready since late January, but the Commission multiplied the reviews to be sure of his argument. Indeed, Google is a “target” delicate. Because the Internet group, which is in the sights of the Commission since 2009, does not take the concerns of Brussels lightly

Its leaders have learned the “case” Microsoft. Another giant US computer remained struggling with Brussels for over ten years. It cost him a lot of money, time, and his image was permanently tarnished.

In Europe as in the US, Google is surrounded by the best lawyers (the law firm Cleary Gottlieb in Brussels) and its Brussels office, located a few hundred meters of the Commission and the European Parliament, is virtually assigned to investigations against him.

Between 2009 and 2014, the US group hoped get out by dealing with the Commission. The Competition Commissioner at the time, Joaquin Almunia, Margrethe Vestager predecessor, was convinced that dialogue should prevail.

But the group’s three attempts at reconciliation have failed, particularly because of the mobilization complainants in 2014. And when she took office in November 2014, M ^me Vestager decided to go the hard way.

Since then, Google has built its strategy accordingly: “it took a very hard approach, he rejected all the Commission’s charges,” reports a Brussels source familiar with the matter

• <. h2 class="heading"> the US government involved in this issue?

it’s been months that Washington sends messages without nuances to the Commission, accusing Europe to blame American groups to protect its domestic market. Charges dismissed, consistently and firmly, with M ^me Vestager which states act only compliance with EU competition rules.

The United States are also very concerned about the investigation for illegal state aid for Ireland against Apple: a decision of the Commission, with the key to a heavy fine for the Cupertino (California), is dreaded for months.

the indictment against Android reinforces the picture of intransigence and political courage of M ^me Vestager. The Dane – who was minister of the economy and within the country, and which some predict a destiny premier – admired in Brussels. This is one of the “sizes” of the Juncker Commission, where she is in the vanguard of the crusade against fraud and tax evasion.

The portrait of Margrethe Vestager Brussels has found a new heroine

in addition to the Apple event, it has already condemned Belgium for illegal state aid to tens of multinationals. Fiat and Starbucks have also been sentenced to pay respectively Luxembourg and the Netherlands. Besides Amazon and McDonald’s, which are also in his sights for their arrangements with the Luxembourg tax authorities …