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Google Businesses EU The Almighty Buck

Europe Is Going After Google For Anti-Competitive Behavior With Android 231

Google now faces more competition charges in the European Union. The EU has accused Google of skewing the market against competitors with its Android mobile operating system. The 28-member state bloc's antitrust commissioner concluded in a preliminary decision that the search giant has abused its dominant position in the market by imposing restrictions on Android device makers. "What we found is that Google pursues an overall strategy on mobile devices to protect and expand its dominant position in internet search," said Margrethe Vestager, the EU competition chief. "The commission is concerned that Google's behaviour has harmed consumers by restricting competition and innovation," she added. "Rival search engines and mobile operating systems have not been able to compete on their merits. This is not good." Google has three months to respond to the aforementioned charges. The New York Times reports: Europe's antitrust charges might not necessarily lead to financial or other penalties against Google. If it is found to have broken the region's rules, though, the company may face fines of up to 10 percent of its global revenue, or roughly $7 billion, the maximum allowable amount. Google denies that it has broken European competition rules, saying that its dealings with cellphone manufacturers like Samsung and HTC, among others, are voluntary, and that rival mobile services are readily available on its Android software.According to EU, Google has breached antitrust rules by:1. 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; 2. preventing manufacturers from selling smart mobile devices running on competing operating systems based on the Android open source code; 3. giving financial incentives to manufacturers and mobile network operators on condition that they exclusively pre-install Google Search on their devices."The joke in Google's cafeteria today will be "let them use bing," said Andrew Parker, VC. "So disappointing that browser dominance on Android is the only thing that the EU can get worked up about," Blaine Cook, co-founder of Poetica noted. "The European Commission's statement of objections against Android lends further credibility to Oracle's $9B copyright claim," Florian Mueller, the founder of FOSS Patents blog wrote.
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Europe Is Going After Google For Anti-Competitive Behavior With Android

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  • Ironic (Score:5, Insightful)

    by danbob999 ( 2490674 ) on Wednesday April 20, 2016 @09:05AM (#51946915)

    Given that Android is the only mobile OS that actually allows phone manufacturers/carriers to change the default search engine or browser.

    • Given that Android is the only mobile OS that actually allows phone manufacturers/carriers to change the default search engine or browser.

      False. BBOS and BB10 have allowed the carriers to change the default search engine for several years - even before Android was around.

    • Given that Android is the only mobile OS that actually allows phone manufacturers/carriers to change the default search engine or browser.

      Is that so? I'd wager you'd be hard-pressed to back that claim up by naming a single mobile OS that prevents manufacturers from changing the default. After all, the point is moot with most of the other OSes (e.g. iOS, Windows), simply because the companies behind them do their own manufacturing. The thing that's notable about Android is that it's the only major OS for which that (mostly) isn't the case, which is also why your statement has the ring of truth to it at first glance, even though it's factually

  • Its also market, maps, calendar, etc. Gapps include so many services, many of them made in a way that the app developer has to choose between google proprietary and competitors. If some startup proclaims to compete with google, they usually get bought up, and don't continue to offer their services.

    • If some startup proclaims to compete with google, they usually get bought up, and don't continue to offer their services.

      Oh really?

      http://arstechnica.com/gadgets... [arstechnica.com]

  • by Comboman ( 895500 ) on Wednesday April 20, 2016 @09:14AM (#51946983)
    Google has a browser? That can't possibly be true, because Microsoft's market dominance in the 90s ensured that their default Internet Explorer browser did not face any competition and is now the only browser that exists (at least according to the logic of EU regulators).
    • Re: (Score:3, Insightful)

      by Sique ( 173459 )
      You got it in reverse. Because (beside other things) the EU forced standard Windows installs not to bundle Internet Explorer, but to leave the choice of a browser to the consumer, other browsers could compete on their merit. And now we have several viable browser alternatives.

      Apparently the logic of the EU regulators had the desired effect.

      • by Solandri ( 704621 ) on Wednesday April 20, 2016 @12:32PM (#51948933)
        Nope. After IE hit about 90% market share [wikimedia.org], Microsoft figured they'd conquered the market and killed off all competitors. So they decided they'd earned a well-deserved rest and did... nothing. They stopped all development work on IE. For about 13 months they didn't add any new features to IE - the only updates were security updates (this was around 2001-2002 if I remember). This was an eternity in web browser development at the time. When Netscape and IE were competing, they were rolling out new features semi-annually or even quarterly.

        That window was what allowed Firefox to take hold. Can you imagine browsing without tabs? Firefox introduced tabs, and that feature alone made it immensely popular. FF made IE look so much like a lump of coal that FF quickly jumped to about 25% market share. By the time the EU browser choice requirement [bbc.com] was implemented (Dec 2009), FF was already over 30% market share [cloudfront.net]. Google's Chrome browser had already been steadily growing in popularity for most of that year, and FF actually decreased in market share after the EU-mandated browser choice.

        So it'd be more accurate to say Microsoft blew it big time by choosing to stand still because they had a monopoly, but that only cost them about a third of their monopoly. It took another quasi-monopoly (Google search + apps) to break Microsoft's OS-browser monopoly for good. I'm not sure the EU browser choice window had any effect. IE was already on the way down at the end of 2009 when the EU mandate was implemented. And the rate at which IE declined in market share didn't change appreciably from before 1Q 2010 to after.

        (That's not to say I disagree with the EU mandate. I was actually more anti-Microsoft back in those days and felt they should've been broken up into an OS company and an apps company. But the problem with government regulation in software is that it just takes too damn long, and by the time it's finally implemented the entire software landscape has already changed for other reasons.)
    • by AmiMoJo ( 196126 )

      Maybe you didn't notice but Microsoft had to add the browser choice screen to all EU versions of Windows, and at the time there was a noticeable shift away from IE. It's also likely that the EU and US complaints about IE were a factor in its long stagnation period, during which Firefox and then Chrome were able to gain market share quickly.

      Another thing we can thank the EU for is Windows N. It's like normal Windows but doesn't include the Media Player and some other bloatware we never use.

  • by Anonymous Coward

    How on Earth does "The European Commission's statement of objections against Android lends further credibility to Oracle's $9B copyright claim,"?

    This is a total non-sequitur.

  • The key is the apps (Score:4, Interesting)

    by NotInHere ( 3654617 ) on Wednesday April 20, 2016 @09:19AM (#51947055)

    Google's lock in system bases not on the google-owned apps (they are just a few, and yes they are very much used by users, but I guess people can come up with an alternative). The main reason to be locked in to Google is their proprietary APIs they offer to app developers. You can't simply take an apk and publish it on an alternative market, if there are no gapps installed on the device, most of the apps won't work.

    So even if a competitor managed to replace all the gapps that are exposed to the user (maps, search, etc), they still would have a very hard time at building a competing app store. Most of the app developers don't want to port the app if the user count is low and nobody would install it if they couldn't install all the apps.

    Its the same issue linux is facing. People don't care about operating systems. They want to install an application, and if it doesn't work, its not the fault of the application developers, its the fault of the operating system (at least for them).

    • by Shawn Willden ( 2914343 ) on Wednesday April 20, 2016 @09:46AM (#51947285)

      Google's lock in system bases not on the google-owned apps (they are just a few, and yes they are very much used by users, but I guess people can come up with an alternative). The main reason to be locked in to Google is their proprietary APIs they offer to app developers. You can't simply take an apk and publish it on an alternative market, if there are no gapps installed on the device, most of the apps won't work.

      I don't see that.

      Looking at the APIs in question [google.com], I see a pretty extensive list, but it's pretty much all just stuff to interact with Google services. There are APIs for:

      Google ads
      Google analytics
      Google search integration (AppIndexing)
      Google account authentication
      Google cast devices
      Google drive integration
      Google fit integration
      Google games integration
      Google cloud messaging integration
      Google location services
      Google maps integration
      Google street view integration
      Google+ integration
      Google vision integration (server-based service for doing object recognition)
      Google wallet integration
      Wear integration

      Only the last item (Wear integration) isn't obviously tied to some Google server-side systems. And while the above list is a pretty useful set of services for apps that want to use them, there are lots and lots of apps that have absolutely no need for any of the above... with one exception. I suspect what breaks most apps that don't work on non-GMS devices is the lack of the ads API. But there are third-party ads libraries which wrap the GMS ads API as well as other ads APIs so that app developers who don't want to be tied to Google only (and many do like to use other ad networks, so there's a reason for this other than independence of GMS APIs) can use those. Thanks to the run-time class loading and introspection features of Java, it's fairly easy to write code that checks whether a particular class (e.g. com.google.android.gms.ads.MobileAds) is present, and to then do something more useful than crashing if it's not and AFAIK all of the ads aggregation APIs do that.

      My perception is that Google tries hard to ensure that as much as possible goes into the core system, and as little as possible goes into the GMS APIs. The exceptions are (a) things that are inherently tied to Google services and (b) things that Google wants to be able to update on its own (e.g. WebView). That second category is stuff that Google will move back to the core system if and when OEMs fix their update process problems, I expect.

      (Disclosure: I'm a Google Android engineer. Note that I'm carefully *not* addressing the topic of the EU anti-trust investigation, and I will not, for obvious reasons.)

      • First of all, its great to see google being devoted to open source this much. Not many companies do release so much code. That's really cool! I guess this also helped convincing Microsoft to abandon their "Open source == cancer" strategy, proving that you can be the leader of a market *and* release open source software.

        Most apps will use at least two of analytics, ads, and GCM, probably almost all will use at least one of those three.

        Also its good for Google being able to have at least some influence on the

    • by AmiMoJo ( 196126 )

      You can't simply take an apk and publish it on an alternative market, if there are no gapps installed on the device, most of the apps won't work.

      There are over 1,800 apps on the FDroid repository alone that work just fine without Google's apps. Many of them are also available on Google Play. Android is actually really good about not requiring Google Apps to work, and distros like Cyanogen offer FOSS replacements for them. Basically the APIs used are public and can be implemented by any app simply by taking ownership of the relevant "intents".

      • There are over 1,800 apps on the FDroid repository alone that work just fine without Google's apps.

        And there are even more apps that are open source but not on F-Droid because they use one Google API or another. Think of Signal, for example. Also, often developers add a feature to an app where they integrate Google maps or something, and bam the new version of the app can't be included into F-Droid anymore. This puts lots of stress onto the app developers, as they now have to develop for two stores, not just one, and very often they are annoyed by the F-Droid crowd demanding to remove Google API usage wh

    • by jabuzz ( 182671 )

      That must be why the Amazon App store is empty then?

      • That must be why the Amazon App store is empty then?

        Well, largely, yeah. There are only a fraction of apps in comparison. It takes special work to port over now because you have to reimplement / workaround that stuff from Google Services API that you can't use and for many developers it's not worth the effort.

  • by H3lldr0p ( 40304 ) on Wednesday April 20, 2016 @09:21AM (#51947067) Homepage

    From the first link:

    ...However, if a manufacturer wishes to pre-install Google proprietary apps, including Google Play Store and Google Search, on any of its devices, Google requires it to enter into an "Anti-Fragmentation Agreement" that commits it not to sell devices running on Android forks.

    Which makes sooooo much sense from a software shop perspective as well as a historical one as well. You want there to be as singular as an install base as possible. Same goes for the Linux kernel. Is the commission going to go after that next?

    A second section:

    As a result, rival search engines are not able to become the default search service on the significant majority of devices sold in the EEA.

    Defaults can be pretty powerful, just go ask Microsoft and IE. But that doesn't stop people from installing something that works better for them. See Chrome and Firefox, both of which were able to overcome IE's default market position by offering a product that people liked better. The same can and should happen here.

    I think there should be a space between the search results and the advertisement side of Alphabet. However, that's an entirely separate issue from Android. The same goes for privacy. Both are important enough to break out on their own, so this? This is nuts.

  • Missing the point (Score:2, Interesting)

    by zmooc ( 33175 )

    I don't care Google Play is the only app store. I don't care they impose restrictions on vendors. I don't care. What I do care about is the lack of innovation in mobile browsers. The sole reason native mobile app are and remain so popular is the lack of a proper web-based alternative, which is likely to be actively held back by Apple and Google, effectively creating a monopoly for native apps while we could have had proper web-based apps (with offline support, proper notifications, proper storage, proper in

    • Re:Missing the point (Score:4, Informative)

      by Hentes ( 2461350 ) on Wednesday April 20, 2016 @09:38AM (#51947221)

      There's also the thing that web apps suck. The web is a hypertext platform, not an app platform.

    • Mozilla tried that and all the naysayers on here said Firefox OS was a bad idea, so they killed it.

      I personally liked the OS...

    • The sole reason native mobile app are and remain so popular is the lack of a proper web-based alternative, which is likely to be actively held back by Apple and Google, effectively creating a monopoly for native apps while we could have had proper web-based apps

      If web-based apps were so much better, you'd be using them already. They aren't, so you aren't. Apple has done bad things to competing browsers, but Google hasn't, and yet mobile Firefox still sucks. That's not Google's fault.

    • Wow, so the worm has turned.

      Remember 10 years ago when the iPhone came out, and all it had was web apps, and everyone bitched and moaned that they hadn't published developer tools and an API to code against?

      And this was when there actually was enough innovation in mobile browsers, as Safari Mobile made every other browser on every other phone look like a joke, leading to WebKit (and it's descendants) to rule the browser market today.

  • Bing Bong (Score:5, Insightful)

    by fluffernutter ( 1411889 ) on Wednesday April 20, 2016 @09:27AM (#51947123)
    In all honesty I've tried to use other search engines but none of them come close to Google results, especially when searching on development terms, error messages and the like. Don't even get me started on Bing, it clearly steers the results towards something it can sell you. There seems to be a funny philosophy that Bing was made with.. it seems to be orientated to people, places, and things rather than point me to the actual answer to a development question that is buried in an internet comment somewhere.
  • Rule #1 (Score:5, Funny)

    by twmcneil ( 942300 ) on Wednesday April 20, 2016 @09:32AM (#51947169)
    If you have any respect at all for your own credibility, do not quote Florian Mueller. I'd say he's an ass, but that would be disrespectful to the Donkey.
  • by ooloorie ( 4394035 ) on Wednesday April 20, 2016 @09:35AM (#51947201)

    Don't kid yourself: tools like Margrethe Vestager exist for two simple reasons. First, wounded European pride, namely the fact that Europe is far behind the US in innovation and high tech. Second, uncompetitive European corporations are trying to win through political machinations when they can't win in the market.

    • Comment removed (Score:4, Interesting)

      by account_deleted ( 4530225 ) on Wednesday April 20, 2016 @09:50AM (#51947319)
      Comment removed based on user account deletion
      • You mean the uncompetitive companies like BP, Shell, Philips, Siemens, AB Inbev, Heineken, Mercedes, Volvo, Volkswagen, Nestle, Unilever, ... (You might even figure out why they are grouped like they are)

        I know English is a tough language, but you could at least try! "Uncompetitive European corporations are trying..." doesn't mean "all European corporations are uncompetitive". In fact, even you might be able to figure out which uncompetitive European corporations particularly dislike Google. Hint: it's not

    • Don't kid yourself: tools like Margrethe Vestager exist for two simple reasons. First, wounded European pride, namely the fact that Europe is far behind the US in innovation and high tech. Second, uncompetitive European corporations are trying to win through political machinations when they can't win in the market.

      OK, rarr rarr USA, whatever.

      If you knew anything outside your little patriotic bubble you'd know the EU quite commonly has gone after European pharma conglomerates. Also, laws here are tighter around competition and privacy than in the US, so obviously US companies are going to fall foul of them more often because they are not stopped at home.

      • Also, laws here are tighter around competition and privacy than in the US, so obviously US companies are going to fall foul of them more often because they are not stopped at home.

        Sure, privacy and competition are more limited in Europe. What's your point?

        If you knew anything outside your little patriotic bubble you'd know the EU

        It's because of my "patriotic bubble" in Europe that I emigrated to the US. Imagine that.

        • Sure, privacy and competition are more limited in Europe. What's your point?

          Er... that if Google is not following the law that all companies operating in EU have to follow, that does not make applying that law protectionism.

          • Er... that if Google is not following the law that all companies operating in EU have to follow, that does not make applying that law protectionism.

            You're right: the nature of a law doesn't depend on whether it is applied or whether people obey it.

            For example, the Nuremberg Laws were anti-Semitic even though many Germans didn't actually follow them.

  • by The-Forge ( 84105 ) on Wednesday April 20, 2016 @09:41AM (#51947239)

    Ok, based off what I read, 1 & 3 are true but they are common business practices used in multiple areas. 2 is completely false but market forces make it look true.

    A good example of 1 & 3 is Coke. If you decide to have Coke in your business, Coke will give you things as promotional considerations. Signs with you name on it plus the Coke logo, etc. But to get those you have to not carry Pepsi. That's the crux of 1 & 3. If you want to carry both, then you don't get the goodies that go along with them. You can preload Play with something else, but not Maps, Gmail and the other unless you agree to exclusivity for the preinstalled items. (The Play concession was made a while back to satisfy some anti-trust worries). More manufactures don't do that though because of the incentives plus market forces. People want Google's stuff there and ready. Google isn't holding a gun to people's head saying "Use Gmail or else". There are plenty of option and I use one myself in the form of AquaMail to my non-Gmail e-mail.

    As for #2, hello, phones being sold running Cyanogen and others based on AOSP derivatives, but they don't have a big market share yet, or maybe ever. Market forces (people) aren't creating a demand for them. Thus the big guys don't make Cyanogen phones because people won't buy them en mass. And it's not for a lack of trying. Look at Samsung and all the times they've tried to do Tizen as an Android alternative. They never got anywhere. The mass market is happy with what they have. Phone OSs are a two horse race (Android and iOS). You're not going to force the market to accept more if they don't want it, but that's seems to be what the EU is angling for with #2.

    This is just how I see it. I'm sure someone is going to come along with some conspiracy and collusion theory as to why I'm wrong, but this is a situation where the simple answer is the answer.

    • That they are common do not mean they are intentonal. There is a difference between having to pay a fee per shipment of goods, and being able to bundle goods per shipment. The former is a example of why restaurants only carry soft drinks from one brand: To order more than 1 brand would require more than 1 shipment, which costs money.
      Which is also why shipment services exist in the first place. To a business it might be cheaper to hire a third party to pick up all the goods and deliver it, then to have have

    • Comment removed based on user account deletion
    • Once more from the rooftops:

      The rules change when you become a monopoly.

      Apple still play but they are a relatively niche provider in the worldwide scheme of things, so it's becoming fair to think of Android as a monopoly. You have to act deliberately carefully when everybody *has* to use you otherwise you will get regulated, and there's evidence of deliberate control of the market by Google.

    • by Shimbo ( 100005 )

      I'm sure someone is going to come along with some conspiracy and collusion theory as to why I'm wrong

      I don't think much refutation is required for "Google is only doing the same sort of things that got Coke fined for monopoly abuse".

    • As for #2, hello, phones being sold running Cyanogen and others based on AOSP derivatives, but they don't have a big market share yet, or maybe ever.

      It's not well explained in the summary, but one of the conditions when licensing the Play Store for inclusion in your Android phones is that you can't release phones with Android forks. I don't know the exact wording but you get the idea. So #2 is actually true, it's just not clearly explained in the summary

  • by deadwill69 ( 1683700 ) on Wednesday April 20, 2016 @09:46AM (#51947277)
    "Rival search engines and mobile operating systems have not been able to compete on their merits. This is not good." I don't even know what to say about this! If you can't compete on your own merits then where is the problem? Give me something better and maybe I'll try it. WebOS was pretty good, but it couldn't compete on it's merits either. We all see where it is. Make a better product. Google and Apple did and they are winning. On their own merits.
    • "Rival search engines and mobile operating systems have not been able to compete on their merits. This is not good."

      I don't even know what to say about this! If you can't compete on your own merits then where is the problem? Give me something better and maybe I'll try it. WebOS was pretty good, but it couldn't compete on it's merits either. We all see where it is. Make a better product. Google and Apple did and they are winning. On their own merits.

      I think you're parsing that incorrectly. The quote is saying that rival search engines are being prevented from competing on their merits. Preinstallation is everything, because user inertia means you won't usually go to the trouble of changing the search engine. So if Google use their power to prevent preinstallation of a rival, you aren't likely to ever know of its merits.

  • ...requiring manufacturers to pre-install Google Search and Google's Chrome browser...

    If it is wrong for Microsoft to do it, then it must also be wrong for Google, even if their practise isn't unpopular (yet).

  • Cyanogenmod and FireOS are two competing OS's using AOSP as a basis which are found preinstalled on phones. It's not because the latter isn't available in Europe that Google should be blamed for it.
    • The people involved in competition disputes are actually interested in whether there is real competition and if a company is trying to use dominance in one are to gain dominance in another. They are not intereste in theoretically things that could compete but aren't.

      Remember the point is not about having a monopoly it's about abusing it.

  • Is it just because they're American? They're not actually doing any of this shit. Carriers are free to bundle another search, and they don't have to put google search on the home screen. They can also bundle another browser or whatever if they like. The truth is that there is no viable competition for most gapps. It's not because google has done anything to prevent it; if someone else can come up with something better, then they are free to put it in the app store and people will download it.

  • ... those complaints could apply to Apple aswell.

    Just sayin'.

  • It's a market that wouldn't even exist but for Google. Prior to this search engines were shitty, pure text searches. Some were toying with auto rankings of search phrases based on which results people actuay clicked on (I think Ask Jeeves(?) had a patent on that?)

    Anyway, this much deeper search is all Google, which is why people went to them.

    • I don't know about anyone else, but I always have to go back to Google to find info on Microsoft.com (especially technical articles or programming specs), updates for Microsoft or Logitech stuff, items on Best Buy, because all their searches are old-school pure text shit.

      No, Microsoft. If I push F1 in Excel on a Visual Basic keyword in Excel, I am not looking for something in a Java or Microsoft Access language.

      This is why you fail.

  • by backslashdot ( 95548 ) on Wednesday April 20, 2016 @10:53AM (#51947863)

    This must be Apple's hypocritical doing. How come Apple hasn't been sued for monopolistic practices? When you buy apps or movies on iTunes (legally) you are have to spend money to repurchase them if you want to switch to Android. Also there is no way to re-sell apps that you bought once you are done with it.

  • Amazon apparently has no major issues taking Android and turning it into something entirely different, with their own interface and tools for their Fire line of products. Are these not available in the EU or somethin?

  • by advocate_one ( 662832 ) on Wednesday April 20, 2016 @03:07PM (#51950725)
    ah yes, that well known Microsoft/Oracle anti-Google shill...

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