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THE EUROPEAN COMMISSION has opened up an investigation into Google over the rules it imposes on phone makers using Android.
Roughly 80% of smartphones used in Europe run on Android but the European Commission (EC) is taking issue with some of the company’s practices.
The EC has sent a Statement of Objections to Google regarding the conditions it places on phone makers using the operating system, saying it kills competition.
“Based on our investigation so far, we believe that Google’s behaviour denies consumers a wider choice of mobile apps and services and stands in the way of innovation by other players,” said EU competition commissioner Margrethe Vestager.
The specific claims made against Google include:
Google has already released a statement rejecting the claims saying its “partner agreements are entirely voluntary” and that the revenue generated by its apps and services via Android are what helps fund it and keep it free.
We take these concerns seriously but we also believe that our business model keeps manufacturers’ costs low and their flexibility high, while giving consumers unprecedented control of their mobile devices.
While Android is free for manufacturers to use, it’s costly to develop, improve, keep secure, and defend against patent suits. We provide Android for free, and offset our costs through the revenue we generate on our Google apps and services we distribute via Android.
Looking to the past
As for what happens now, it’s worth looking at what happened with Microsoft and Internet Explorer back in 2009 as a possible example. The company used its dominant position as the leading desktop software to push Internet Explorer and therefore become the dominant player in the web browser market.
After losing a court case in 2010 and being fined €860 million overall, it was then required to include a web browser choice screen. This showed Windows XP, Vista and 7 users 11 different browsers they could install including Internet Explorer. This case eventually led to another EU case looking into Google’s search engine practices.
While the fine was huge, the EU didn’t feel that would be enough to stem anti-competitive behaviour among companies. The then EU competition commissioner Joaquin Almunia said that the commission would look for negotiated settlements that would change businesses’ plans instead of just fining them.
That will likely be the approach for this Android case. Google might be able to absorb the costs a fine would bring, but with the focus on cutting down the practice outright, it would look to ensure users get a choice of browser and search option the first time they start up a smartphone.
One part of the problem is how most Android smartphones tend to double up on similar apps. The agreement with Android is you include these apps as standard and are free to add your own afterwards, which is why you end up with two photo apps, two messaging apps, two calendar apps and so on.
The other part concerns Google’s statement which mentions how it’s free but costly to develop. Depending on the compromises made over the next few months, it could end up limiting revenue streams and cause it to look for money elsewhere.
One of the benefits of Android is it doesn’t cost phone makers anything to modify, developing software from scratch is a major cost for any company, and helps keep the overall cost of their phones down.
If Google has to find other ways to fund it, or follow Apple’s example and charge developers an annual fee for publishing apps, then that could have an impact on the type of apps released. If it gets manufacturers to pay for it in some form, that cost could be passed down to consumers through smartphone prices.
Google has three months to respond to the claims.
Ireland… The best little country in the world to screw the self employed…
The best country in the world to be a politician
Having Noonan in charge of Finance is like having a fox in charge of a hen house. .
If they do away with usc they will increase lpt dont be so naive the banks were guaranteed.
Having 1000 plus children in hotel rooms B and B ect and having an 85 year old woman pass away after 2 days on a trolley should be addressed first !!
Take the 13 Billion from Apple or whatever the government can get at this stage and put some prosperity back into Ireland.
What a load of useless wasters the above people are. Half a billion for the total budget for Ireland.A fiver for the old age pensioners……
Waffle waffle waffle.
Don’t forget drag the Apple debacle out for another five years while the people of Ireland struggle because of Noonan.
Are you really so naive to think that Apple will just hand over 13 billion to the Irish government and then continue happily employing the thousands of people nationwide?
Cathal how long would it take for apples workforce to pay €13bn in tax? There are I think 6,000 of them.
Let’s not be fooled here. It’s not a billion euro giveaway. It’s a 3 billion euro giveaway. That’s how much government spending is increasing over the past year. Why the difference? Because the other 2 billion is eaten up by government “commitments”, ie increases in public sector pay and more money into the black hole health budget, most likely eaten up by consultants fees. The 1 billion is what is left to “play with”.
Imagine we had not increased public sector pay this year. We could pretty much half the USC in a single year. The government is using and abusing the middle class and private sector who create the wealth by retaining the USC to feed the insatiable public sector, welfare recipients and health consultants.
Yea your right lets knock teachers, nurses and gardai pay down to minimum wage…that will surely attract the best and stop them emigrating to Dubai etc!!
@Eoin McDonnell:
Eoin if we had halved the USC instead of giving pay rises, the nurses, guards and teachers would have benefited too.
@ Fred totally agree
Not too mention the scroungers year after year on the dole
It’s not an increase in public sector pay.. Its a very partial restoration of pay and then only for certain grades !
I don’t know anyone in the public sector who has had a pay rise, I know the younger more vulnerable members have had ONLY A FRACTION of their pay RESTORED but nope no pay rises I am afraid…
@Eoin McDonnell:
“Restore” to what? 2008 levels? Based on tax revenues from an unsustainable property bubble? Have a think about that.
You have no moral right to 2008 levels of pay. We couldn’t afford it then and we can’t afford it now, they use the USC to pay for it.
@Karl: Yes but a cut to USC benefits all workers across all sectors.
Fred yes if the ps didn’t get a pay rise you could cut usc. How much inconvenience do you think the resulting strikes would cause you. Public sector workers are running out of patience as it is. They won’t take much more bs.
Yes Fred but that would not be what we were promised. We agreed to a temporary pay cut to help us get out of a tight spot. We are out of that spot apparently so pay us. Keep the recovery going ;)
@Fred Johnson: Thats short sgihted public private nonsense , it was some wealth created there in the 2010 when the Troika landed to convert private to sovereign debt. The public service shouldered it on the double pay cuts, usc and Fempi as well as no budgets to properly complete jobs. This was right and fair.
Public workers now continue to pay USC , pay reductions and the emergency reductions in FEMPI, so roughly double your USC that’s what comes out of a nurse,garda,firefighter,civil servant pay cheque. You would swear a public servant lives in a different economy or eats a different type of bread and their kids automatically have storks delivering uniforms and football boots. So when Dublin Bus gets 12% Luas workes 18% , these people are completing with public servants among others in the housing market.
Seriously consider inviting Apple/Google/Pfizer here and saying to them unfortunately we have no Gardai working today so the army is on the streets but its not as bad the hospitals were closed last week. No investment. The jobs these people do are real jobs and necessary job roles in a functioning society. We’re all in this little place together and truth is without foreign direct investment we’d still be a basket case economy and without stability you can’t have that.
It’s not a giveaway. It was our money before the government forcibly took it from us. At most, it’s the Mafia boss sending us a wedding present after years of running a protection racket.
@Ben McArthur: Who are the government….a foreign power???
@Get Lost Eircodes: They are the proxy of foreign powers such as the IMF and the EU. They have no loyalty to the Irish people, that’s for sure.
Racketeers who have acquired the veneer of legitimacy by pretending every so often that we have the chance to throw them out. If politics stopped tomorrow, the real government would continue. Look at Belgium, who supposedly had no government for over a year. Does anyone think it really made any difference?
First priority will be the golden circle closely followed by the gombeens, cronies and sleeveens.The only difference the ordinary punter will notice is the increase in government advertising/self promotion in the poddle like media,
Sew up your pockets, Jabba the Hutt wants to remove the contents and turn them inside out .
“incentives will be rolled out to encourage entrepreneurship”. I fell off my chair reading that and I’m sure I’m not the only one. After the way small business has been treated for years anyone with sense will go elsewhere with their energy, brains and passion to start a business. Ireland exports its young qualified people and its potential indigenous businesses. When the multinationals all go to China or somewhere what will there be left here? Just fat politicians on massive pensions who will tell us it’s our own fault.
29,000 sign on Change.org petition for Reform of the daft Irish Motor Tax system … €280 for new Merc … €580 for 10 yr old 1.6L … the most regressive unfair motor tax system in the EU. poor subsidising the rich … a disgusting society to live in.
Pre-budget submission made to Dept of Finance on behalf of 29,000 signatories …. 87,000 visited the Change.org site.
I’d have no problem with self employed receiving more tax credits but they cants prove their income. Can other employees claim expenses and vat back too?
Free the Journal 50
@now-now-now:
Haha. Let the cat out.
Powerabbey
Sep 19th 2016, 10:15 AM # 33 1
Free the Journal 50
@LITTLEONE: You can see Dane’s hand writ large all over the comments section, every now and again he trips himself up. It must be hard for the most profilic profile maker to keep track of them all, especially in between driving lessons, I just hope the haste is not him texting whilst driving..:)
Free the 50 accounts
@now-now-now: Are they that bad at buying a round?
Ah sure Ireland’s a wash with money no other country can afforded to turn down € 13 billion in un-payed taxes. There will be at least a fiver for everyone in the audience.
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