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In April 2015 the European Commission opened a formal antitrust investigation of Google in relation to its Android mobile operating systems and Google’s agreements associated with the use of Android and Google’s proprietary applications. Following from that investigation, the European Commission has (on 20 April 2016) issued a Statement of Objections. In effect, the European Commission alleges that Google, which has 90% of the market share for general internet searches, is abusing its dominant position. In its Statement of Objections, the Commission outlined three specific concerns:

1. Licensing agreements of Google’s proprietary applications which may limit device manufacturers’ freedom to choose the most appropriate apps to pre-install;
2. Anti-Fragmentation Agreements which device manufacturers are required to enter into as a condition to pre-install Google proprietary applications; and
3. Financial incentives granted to smartphone/tablet manufacturers and mobile network operators in exchange for them exclusively pre-installing Google search.

It will be up to Google to reply to the Commission’s Statement of Position before the matter is concluded at the level of the European Commission.

This article appears in the JHA May 2016 Tax Newsletter, which also features:

1. Judgments in Cases C-607/14 Bookit and C-130/15 National Exhibition Centre by Christopher Kientzler
2. The Council of the European Union’s Newly Adopted Rules and Directive by Cristiana Bulbuc