European Union observed that google is dominating the market by providing various services like general internet search, app stores for mobile phones and licensable mobile phone operating systems. A general search service of google is behaving as a dominant in the international market for providing general internet services in all over European economic area that is in 31 states of EEA.Google has android as a licensable mobile operating system and it is available for licensing. This means that third party manufacturers of smart phone will get the authority to license and run the android feature on their smart phone. The case study will develop a better understanding of Googles illegal practices, its effects on virtual market and consequences faced by Google with a conclusion on case.
Under the rules of European Union, market dominance is not illegal. Though companies have a special concern to not dominate market or restrict the competition by their powerful market positions.
Google was involved in three types of activities
European Unions investigation commission has stated some points
Google committed these three types of abuse at the time when there was a trend of mobile and internet. It was era of mobile and internet in the world and it was growing undoubtedly. It was a strategy of Google to create dominance in the industry of mobile and internet. Googles practice restricted the competition for the rival search engines. Due to pre- installation of apps and search engines it also restricted the innovation in mobile operating system apart from internet searches.Googles strategy of pre-installation and must installation of the Googles apps have restricted the rival search engine operators to collect more data from smart phone devices, consisting of search engines and mobile location data.
According to commissions 2006 guideline on fines, the commission calculated the fine amount on the basis of Googles revenue from its search engine advertising services on mobile and android devices in European economic area. European Union has charged antitrust fine of 4.34 billion euros. It was almost double of the last years Googles charge in last few years. The fine was charges on account to loose Googles grip on android software, which was used by 80 per cent of smart phone users. The commission also started proceedings about concerning Googles conduct on android application and software. Google now has to stop all its illegal practices. Due to this google was responsible to face civil actions for the indemnitiesand it can be brought in by any person or business who has affected by its anti- competitive behaviour in front of the court of member state. The commission also continued with investigation for the restriction that Google has made on capacity of the third party websites to show search advertisement from Googles rivals.
The above case study concludes that google had adopted various illegal practices in market to reduce its competitors. It also dominated the virtual world and market of small mobile operating software and android devices. It acquired some firms and manufacturers financially to operate and pre-install Googles default apps in mobile devices. European Union charged very heavy amount on Google to stop these practices and warned Google to stop those practices in market.
Edelman, Benjamin, and Damien Geradin. Android and competition law exploring and assessing Googles practices in mobile.European Competition Journal12, no. 2-3 (2016) 159-194.
Perotti, Elena. Googles Antitrust Woes Around the World.Available at SSRN 3060298(2017).
Rosenboom, Nicole SR, ViktriaKocsis, and Jos DWE Mulder. Consumer Damages For Breach Of Antitrust Rules How To Reach Full Compensation For Consumers.Journal of Competition Law amp Economics13, no. 4 (2017) 710-728.
Santario Adam, and Nikas Jack E.U. Fines Google 5.1 Billion in Android Antitrustcase..Available atthe newyorktimes (2018)
PTI Regulators challenge Boeing to prove its Max jets are safe.Available at economictimes ,accesedon15march(2019).
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