Google faced competition objections in Germany this summer regarding the bundling of services, including Google Maps, through its Android-based in-car infotainment system software known as Google Automotive Services (GAS). In response, the tech giant has proposed certain service unbundling and the removal of contractual restrictions imposed on vehicle manufacturers. This move is aimed at resolving regulatory concerns raised by the German competition regulator.
The German Federal Cartel Office (FCO) had sent a statement of objections in June, specifically criticizing Google’s bundling of Google Maps, Google Play, and Google Assistant in its offer to vehicle manufacturers. The FCO also raised concerns about Google’s practice of linking ad revenue sharing to the exclusion of other voice assistants and imposing restrictions on interoperability with third-party services.
Google’s proposed remedies, subject to a market test by the German competition regulator, include offering three additional products: Google Maps OEM Software Development Kit, Google Play Store, and Cloud Custom Assistant, in addition to the GAS product bundle. These offerings aim to provide vehicle makers with the flexibility to develop maps and navigation services comparable to Google Maps, allow end users to download a wider range of third-party apps, and enable competition with other voice assistants.
Furthermore, Google has suggested removing contractual provisions related to ad revenue sharing and the promotion of its services as default applications in the infotainment platform. The FCO will closely examine these proposals to determine if they effectively address competition concerns.
The FCO, applying Germany’s special competition abuse control regime, has been actively overseeing Google’s business since January 2022. The regulator has secured concessions from Google, including reforms to data terms and limitations on the display of news content from third-party publishers. While the German digital competition reboot focuses on designated tech giants in the local market, the European Union has introduced its own Digital Markets Act (DMA) targeting Internet gatekeepers.
The FCO’s scrutiny of Google Maps and ongoing cooperation with EU competition authorities reflect the evolving landscape of competition enforcement in the digital economy. The EU-wide Big Tech competition reboot is set to be fully operational in 2024, with the FCO maintaining its investigative efforts in the meantime.
