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EU: Google’s ‘open’ Android system seems suspiciously restricted

By  |  February 13, 2014

Google may have dodged a major bullet with its recent settlement with the European Commission over its policy of displaying rival search results, but recent reports say the conglomerate may be in hot water again over its Android smartphone operating system.

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    Reports say Google promotes the system as “open,” but newly revealed documents reportedly reveal that Google enforces strict guidelines for smartphone makers that look to access apps in Google’s Play Store. Specifically, reports say manufacturers are forced to feature Google apps and set Google’s search engine as the default engine for users in order to access the apps.

    The agreement, which Google forces smartphone makers like Samsung to sign, is known as the “Mobile Application Distribution Agreement.”

    The European Commission is looking into these conditions as it decides whether to formally accept Google’s third round of concessions, which European Commissioner has approved.

    EU Settlement

    That settlement is generating its own controversy, however, as reports are emerging that EU officials are criticizing Almunia over accepting the offer without a market test.

    Now, reports say that nine European Commissioners voiced their opposition to the decision to accept Google’s third settlement offer without market testing the concessions. The opposition was reportedly vocalized during the regulator’s weekly meeting, held last Wednesday.

    While nine commissioners’ disapproval is not enough to reverse competition commissioner Almunia’s decision, reports say it is rare for such strong opposition to a decision.

    According to Energy Commissioner Gunther Oettinger, the European Commission will take a definitive vote on the ruling later this year.

    Internal Market Commissioner Michel Barnier similarly expressed disapproval for the outcome, telling reporters that the regulators “had a very long debate which shows that there are a lot of concerns and questions.”

    Almunia’s decision to accept Google’s offer regarding how it displays rival search results in the EU means Google avoids a fine as high as $5 billion. Officials and consumer advocates alike have criticized the settlement, often against Almunia’s decision not to market test the offers even after the Commission rejected Google’s first two proposals due to unfavorable market test results.

    Full Content: Reuters and Market Watch

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