Google Antitrust Fine: $123M Penalty in Italy for Android Auto

Google Faces €100 Million Fine in Italy for Antitrust Concerns

Italy’s competition authority has issued a fine exceeding €100 million (~$123M) to Google, citing an abuse of its dominant position within the market.

The investigation centers around Android Auto, the adapted mobile operating system designed for in-car integration, and the limitations placed on access to the platform.

Restriction of Access to JuicePass App

Specifically, Google restricted access for JuicePass, an electric vehicle charging application developed by Enel X Italia.

While JuicePass is available on standard Android smartphones, its exclusion from Android Auto presents a significant obstacle to convenient usage while driving, as motorists should avoid using their phones behind the wheel.

This market restriction by Google has prompted intervention from Italy’s competition watchdog, the AGCM.

Violation of EU Treaty

The AGCM determined that Google violated Article 102 of the Treaty on the Functioning of the European Union. Consequently, Google is mandated to make the JuicePass app accessible through the Android Auto platform.

Furthermore, Google is required to extend comparable interoperability to other third-party application developers.

Competition with Google Maps

The authority highlighted that Google Maps, which offers basic electric vehicle charging services like locating charging stations, is already available on Android Auto.

There is potential for Google Maps to integrate features directly competitive with JuicePass, such as payment processing.

“The Authority’s investigation revealed that Google prevented Enel X Italia from creating a JuicePass version compatible with Android Auto,” the AGCM stated in a press release. “JuicePass provides comprehensive services for electric vehicle recharging, including station location, session management, and reservation capabilities.”

“By denying interoperability, Google unfairly limited user access to the Enel X Italia app while driving and recharging. This action favored Google’s own Google Maps app, which currently offers limited charging services but could expand to include reservation and payment functionalities.”

Google’s Response

Google disputes the allegations and disagrees with the order, but has not yet confirmed whether it will file an appeal.

The company maintains that app restrictions on Android Auto are essential for driver safety and minimizing distractions. Google also asserts that it has been progressively expanding platform access, with “thousands” of apps currently compatible.

However, Google did not explain why Enel X Italia’s app was not included among those already granted access.

According to the AGCM, Enel X Italia’s application has been excluded from Android Auto for over two years.

Here is Google’s official statement on the matter.

Market Dominance and EU Law

Google holds a dominant position in the market through the Android smartphone platform, controlling approximately three-quarters of the Italian market share, according to the competition watchdog.

EU law dictates that a company with a dominant market position must refrain from restricting competition in other markets where it operates. Google was previously identified as a dominant company in general Internet search across the European Economic Area in 2017.

Impact on Electric Mobility

The AGCM expressed concern about the potential impact of Google’s restrictions on the growth of the electric mobility market.

Continued restrictions could jeopardize Enel X Italia’s ability to establish a substantial user base during a period of rapid growth in electric vehicle sales.

The authority argued that Google’s exclusion of JuicePass reduces consumer choice and hinders innovation.

“Google’s conduct could influence the development of electric mobility during a critical phase, as recharging infrastructures are being developed and can drive growth and demand for recharging services,” the AGCM stated.

“Consequently, negative effects could occur on the adoption of electric vehicles, the use of ‘clean’ energy, and the transition towards more sustainable mobility.”

Monitoring and Future Regulations

The AGCM will monitor Google’s compliance with the order to ensure effective implementation of obligations regarding third-party app access to Android Auto.

This action may foreshadow future regulatory scrutiny of “gatekeeper” platforms like Google under the forthcoming Digital Markets Act (DMA) in Europe.

The DMA aims to supplement existing competition law with proactive rules governing the behavior of dominant platforms that control access to markets, including requirements for interoperability.

The goal is to proactively address potential market abuse, supplementing the lengthy process of competition investigations.

Competition investigations into major tech companies are ongoing, such as the AGCM’s inquiry into Google’s ad display business initiated last October.

Google has previously faced EU antitrust penalties, including a $5 billion fine related to its Android operations. However, competitors argue that the remedy implemented in 2018 does not guarantee fair competition.

• Android Auto: Google’s in-car operating system.
• JuicePass: An electric vehicle charging app by Enel X Italia.
• AGCM: Italy’s competition authority.
• DMA: Digital Markets Act, upcoming EU regulation.