Android Auto Antitrust Ruling: EU Court Boosts Interoperability

EU Court Clarifies Interoperability Rules for Big Tech

The highest court in Europe has issued a ruling to provide clarity regarding interoperability obligations for major technology companies. This decision stems from a case involving Google’s Android Auto platform and its handling of third-party app integration.

Antitrust Fine and Initial Dispute

In 2021, Italy’s competition authority imposed a €100 million antitrust fine on Google. The penalty was a result of Google’s refusal to allow an electric vehicle charging application, developed by Enel X Italia, to integrate with its Android Auto system – a mobile operating system designed for in-car use.

Google justified its restrictions on Enel’s app by citing concerns about driver distraction. However, this justification was disputed as the company had previously permitted interoperability for thousands of other applications on the Android Auto platform.

Court Ruling Supports Watchdog’s Assessment

The Italian authority argued that Google’s initial denial of integration for Enel’s app represented an abuse of its dominant market position. This action was believed to hinder Enel’s ability to compete effectively and attract customers.

The Court of Justice of the EU (CJEU) ruling, delivered on Tuesday, supports the authority’s assessment. The court confirmed that a refusal to allow interoperability when a company holds a dominant position in the market can indeed constitute an antitrust violation.

Wider Implications for App Developers

Although the specific dispute between Enel and Android Auto has been resolved – Google subsequently developed a template for electric car charging apps following Enel’s complaint – the CJEU judgment establishes important conditions for leading technology companies regarding interoperability. These conditions could have broad implications for app developers seeking to integrate their products with major platforms.

Conditions for Justified Refusal of Interoperability

The court determined that refusing interoperability can be considered abusive, even when the platform is not essential for the app’s functionality. However, the judgment also outlines specific circumstances where a refusal may be justified.

• A refusal is permissible if no template exists for the specific app category at the time of the request.
• Interoperability can be denied if granting access would compromise the platform’s security or integrity.
• Technically impossible access requests provide a valid reason for refusal.

Obligations for Platform Operators

If none of the aforementioned exceptions apply, the ruling mandates that platform operators fulfill interoperability requests within a timeframe that is both “reasonable and necessary.”

Furthermore, the court indicated that “appropriate” financial compensation may be required in certain situations. Any payment must consider the requesting company’s needs, the actual development costs, and the dominant company’s right to benefit from the development.

Google’s Response

Google spokesperson Jo Ogunleye expressed the company’s disappointment with the CJEU ruling in a statement to TechCrunch.

Google maintains that it prioritizes developing features most valued by drivers, such as media and messaging apps. The company suggests that being compelled to allocate development resources to “specific companies’ requests” could detract from innovation driven by user demand.

“We’re disappointed with this ruling and we will now review it in detail,” Google stated. They also noted that the requested feature was only relevant to a very small percentage of cars in Italy at the time of the initial request – 0.04%.

Relationship to the Digital Markets Act

The European Union’s Digital Markets Act (DMA) also addresses interoperability requirements for Big Tech, particularly in the realm of dominant messaging applications.

However, the DMA’s ex ante competition regulation only applies to tech giants designated as “gatekeepers” by the European Commission, and only to their specific core platform services (CPS). While Google has been identified as a DMA gatekeeper, its Android Auto platform is currently not a regulated CPS.

Broader Impact on Market Leaders

As this CJEU ruling demonstrates, interoperability requirements may still apply to the wider business operations of market leaders throughout the EU.