Google is facing regulatory intervention in Germany over its in-car infotainment system software, known as Google Automotive Services (GAS). The German Federal Cartel Office (FCO) raised objections in June, particularly focusing on the bundling of services like Google Maps, Google Play, and Google Assistant, and restrictions imposed on vehicle manufacturers.
To address concerns, Google has proposed remedies, including unbundling services, removing contractual restrictions, and offering new products. These proposals are now subject to a market test by the German competition regulator to determine their effectiveness.
The FCO expressed worries about Google's bundling practices, stating, "This conduct...can result in expanding market power and strengthening ecosystems; it is a particularly problematic way of ‘penetrating’ markets." FCO President Andreas Mundt emphasized the need to examine whether Google's proposals effectively address these concerns.
Google's remedies include offering three additional products: Google Maps OEM Software Development Kit, Google Play Store, and Cloud Custom Assistant. These aim to provide alternatives and reduce concerns about favoring Google's own services. The proposed changes also involve eliminating contractual provisions related to ad revenue sharing and allowing interoperability with third-party services.
The FCO will decide the adequacy of Google's proposals based on market test results. The outcome will determine if Google's services in the automotive sector can be unbundled to comply with competition rules.
This regulatory scrutiny is part of Germany's special competition abuse control regime, applicable to designated tech giants. Similar interventions are expected across the EU following the implementation of the Digital Markets Act. Google's business in Germany has faced multiple concessions, reflecting the evolving landscape of digital competition regulations.
While the EU has not classified GAS as a core platform service, the FCO's attention suggests a focus on preventing market abuses, particularly in the automotive sector. The ongoing investigation into Google Maps and continued cooperation with EU competition authorities indicate sustained scrutiny in the digital economy.
As of June 2023, the FCO expressed intentions to investigate Google's terms of use for the Google Maps Platform, citing concerns about restrictions hindering competition in map services and infotainment systems. The broader EU-wide Big Tech competition reboot is set to be fully operational in 2024, aligning with the compliance deadline for DMA gatekeepers.
In summary, Google's response to German antitrust concerns involves proposed remedies to address bundling and contractual restrictions in its in-car infotainment system. The outcome of the market test will determine the effectiveness of these measures, contributing to ongoing efforts to regulate digital giants in the evolving landscape of European competition enforcement.
