In cases related to Google’s Android Auto platform, the European Supreme Court’s trade-off was to clarify rules regarding Big Tech’s interoperability requirements.
Back to 2021The tech giant suffered an antitrust fine of 100 million euros by the Italian Competition Authority for refusing to let energy company Enel X Italia integrate with its Android Auto Platform, a third-party electric vehicle charging app that was a mobile OS version of the app Version used in the car.
Google claims that restrictions on ENEL apps are necessary to ensure drivers are not distracted, although the company has interoperated its Android Auto platform into thousands of other apps.
Italian authorities believe that the initial barriers to Enel by Google, which integrates with Android Auto, constitute an abuse of dominance, a position that undermines another company’s competitiveness by compressing its ability to attract consumers. The decision of the European Court of Justice (CJEU) on Tuesday was consistent with the supervisory body’s assessment as the court confirmed that refusing interoperability in the context of major market position could constitute antitrust abuse.
Although Enel vs. Android Auto Case has been resolved, Google did develop a template for the electric vehicle charging app after Enel’s complaint, which then continued to be used, and CJEU judged listed the conditions for the market’s leading tech giant. A wider applicability is available for application manufacturers trying to insert their products into key platforms.
Thus, despite the court’s view that companies holding dominant market positions reject interoperability may be abused, including that when the platform itself is “inclusive to the commercial operation of the application”, the judgment may prove justified. “The fact that there is no template for the relevant application category” when accessing the request; or granting interoperability “will compromise the security or integrity of the platform.”
Technically an impossible access request is also an appropriate reason for denial, CJEU said.
If none of these exceptions apply, the ruling states that platform operators must satisfy interoperability requests within a “reasonable and necessary” time. Depending on the circumstances, the court also said that “appropriate” financial compensation could be applied.
In any case of payment, Press release The court issued the statement noted that “it is necessary to consider the needs of third-party affairs, the cause requiring development, the actual cost of development and the right to dominate the position to obtain appropriate benefits from it.”
Google touched on a response to the CJEU ruling, and spokesman Jo Ogunleye sent a statement to TechCrunch via email that expressed disappointment at the ruling.
With Android Auto, Google claims it has prioritized the development of features that drivers need most, starting with media and messaging apps – meaning that if users are forced to redirect limited development resources in “requests from specific companies”, they will loss.
“Although we have emission ENEL requires features, when Enel initially asked, Italy only had 0.04% of cars related. We prioritize the features that drivers need most, because we believe that innovation should be driven by user needs rather than specific company requirements. “We are disappointed with this ruling and now we will review it in detail,” they added. ”
It is worth noting that the Digital Marketing Method (DMA) has also been developed in such cases Major messaging applications.
However, the former competition regulations only apply to tech giants who have previously been designated as so-called gatekeepers by the European Commission, and only to the specific core platform services (CPS) they operate, which are also designated by the EU. So despite Google’s appointment as DMA Gatekeeper, its Android Auto platform has not yet been regulated CPS.
However, as this CJEU ruling emphasizes, interoperability requirements may still apply to the broader business interests of EU market leaders across the board.
