The move follows a competitive objection filed against Google in Germany this summer over the bundling of Google Maps and other services through its Android-based in-vehicle infotainment system software, known as Google Automotive Services (GAS). The tech giant will eliminate some service bundling and contractual restrictions that apply to automakers to resolve regulatory intervention.
Google’s proposed remedies will be applied to the automaker in a market test by Germany’s competition regulator, which will then determine whether it resolves the problems it has identified.
Back in June, this country’s Federal Cartel Office (FCO) sends statement of objection He spoke to tech giants about how to operate GAS, specifically referring to the Google Maps, Google Play, and Google Assistant bundles that Google offers automakers.
The statement also highlighted Google’s practice of giving a portion of its advertising revenue to automakers only if they refrain from pre-installing other voice assistants next to their voice AI. Another concern raised by the FCO is that Google requires GAS license holders to set bundled services as default or prominently display them. It also took issue with Google’s refusal to restrict or allow interoperability of services included in GAS with third-party services.
At the time, the FCO said its preliminary view of Google’s practices around GAS was that they did not comply with German competition rules for large digital companies. This would give the FCO greater freedom to intervene where it suspects competition is being undermined.
“In particular, we are critical of Google’s ability to offer its services for infotainment systems only as a bundle. This reduces the opportunity for competitors to sell competing services as individual services. body,” the FCO said in the summer.
Regulators said they will now carefully consider Google’s proposal to determine whether an appropriate level of separation of its services from in-vehicle infotainment platforms would address competition concerns.
“We are particularly concerned about the forced bundling of the reach of services with significant market power with those with less power. “This is particularly problematic as a way to ‘infiltrate’ the market,” said FCO Chairman Andreas Mundt. press release Google is expected to announce its proposal on Wednesday. “It may reduce the opportunity for our competitors to sell competing services. We will now look very closely at whether Google’s proposal can effectively eliminate the practices that raised our concerns.” ”
Google’s proposed remedy to address the FCO’s competition concerns provides three products separately in addition to the GAS product bundle: Google Maps OEM Software Development Kit, Google Play Store, and Cloud Custom Assistant. This means that automakers will be able to: Develop mapping and navigation services with functionality comparable to Google Maps.
The addition of Google Play Store also allows end users to download a wider selection of third-party apps, alleviating concerns that they will be steered toward using Google’s own apps. Cloud Custom Assistant is described as a “proprietary AI voice assistant solution” for use in vehicles to enable automakers to offer competitive assistants.
The tech giant is also proposing to remove contractual clauses it imposes on advertising revenue sharing provided its proprietary Google Assistant voice AI is exclusively pre-installed on the GAS infotainment platform. .
“Google is also prepared to remove contractual provisions relating to setting Google services as a default application or displaying them prominently on infotainment platforms,” the FCO said. “Finally, Google stands ready to enable licensees to combine the Google Assistant service with other mapping and navigation services and provide the technical prerequisites to create the necessary interoperability.”
“Based on the results of market testing, federal cartel ramt [FCO] It will be determined whether Google’s proposal generally addresses concerns that have been addressed to date. The question of whether Google’s proposal amounts to a bundled offering of Google’s services in the automotive sector will become decisive in this context.”
Google was asked for comment on the proposal.
The technology giant’s business was placed under Germany’s Special Competition Abuse Regulation Regime in January 2022. Since then, the FCO has extracted a number of concessions from the company over how it operates, including securing an agreement on Google’s data reform this autumn. Under the terms, users will be able to gives you more choice in how you can use your information. Last year, Google also proposed limiting how news content it licenses from third-party publishers appears in search results to address regulators’ concerns about self-preference.
Germany’s digital competition restart applies only to designated high-tech giants within the market, but companies may choose to apply product changes globally to manage operational complexity (For example, by launching a new account center, as Meta did this summer, users are opting out of cross-site tracking after the FCO intervened, and the company plans to roll this out globally.) announced).
The European Union has also recently implemented its own pre-competition reforms in the form of the Digital Markets Act (DMA) targeting so-called internet gatekeepers. The FCO’s enforcement against Big Tech therefore raises the possibility of what action will be taken across the bloc next year, when compliance deadlines for the six targeted his DMA gatekeepers and their 22 core platform services begin next year. You can get a glimpse of what’s going on. This list includes Google Maps, Google Play, Google Shopping, Google Ads, Google Chrome, Google Android, Google Search, and YouTube, the Google-owned video sharing platform.
Notably, the EU has not designated GAS as a core platform service. This may partly explain the FCO’s focus on GAS here, as competition regulators across the region seek to avoid duplication of intervention. (Germany’s status as a major automaker may also facilitate scrutiny of Google’s automotive software and services.)
The FCO also began proceedings on Google Maps in June 2022, some time before the DMA was approved by the bloc’s co-members.
On the other hand, the pan-EU regulation began to be applied in May 2023. However, the deadline for DMA gatekeepers to comply is March 2, 2024, so a full restart of Big Tech competition across the EU will not occur until then. next year. This may be enough reason for the FCO to continue monitoring Google Maps for some time. (In this regard, the German regulatory authorities also Said The EU will continue to “cooperate closely” with EU competition authorities on regulating the digital economy.
As of June 2023, the FCO has announced that it will continue to investigate Google’s terms of use for the Google Maps Platform (GMP), and in a preliminary assessment, the tech giant will end restrictions on combining its own GMP mapping services. Use a third party map service that you mentioned you need to type.
“These restrictions could hinder competition between applications relating to mapping services used by, for example, logistics, transport and delivery service providers,” the FCO said at the time. “It could also negatively impact competition among services for vehicle infotainment systems by making it more difficult for map service providers to develop effective alternatives to Google Maps.”
Ex-ante competition law reforms in Germany and across the EU are aimed at curbing fraudulent practices by digital giants that could further consolidate their vast market power, and European regulators are looking to move ahead with these more aggressive reforms. We hope that such interventions will have a better effect on correcting the imbalances in the digital economy. The implementation of a classic competition could be achieved. (A related example of classic enforcement is the 123 million fine that Italy’s competition watchdog imposed on Google in May 2021 over restrictions it applied to third-party app makers via its Android Auto in-car software.) There is a dollar fine.)
Source: techcrunch.com
