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| Google Is Said to Face E.U. Antitrust Charges Over Android Apps | Google Is Said to Face E.U. Antitrust Charges Over Android Apps |
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| Google’s antitrust problems in Europe are about to get a whole lot bigger. | Google’s antitrust problems in Europe are about to get a whole lot bigger. |
| The company is expected to be charged with breaking the European Union’s competition rules by unfairly favoring Google services, like its search engine and Google Maps, on its Android smartphone operating system over those of rivals, according to three people. The three, who work in either government or the private sector, spoke on the condition of anonymity. | The company is expected to be charged with breaking the European Union’s competition rules by unfairly favoring Google services, like its search engine and Google Maps, on its Android smartphone operating system over those of rivals, according to three people. The three, who work in either government or the private sector, spoke on the condition of anonymity. |
| The charges, known formally as a statement of objections, may be announced in Brussels as soon as Wednesday, though the announcement could still be postponed until later this month, according to one of the people. | The charges, known formally as a statement of objections, may be announced in Brussels as soon as Wednesday, though the announcement could still be postponed until later this month, according to one of the people. |
| The expected charges against Google are the latest in a raft of regulatory problems that American tech giants have faced as the European Union has cracked down on these companies’ perceived dominance over how people in the 28-member bloc get access to digital services. | The expected charges against Google are the latest in a raft of regulatory problems that American tech giants have faced as the European Union has cracked down on these companies’ perceived dominance over how people in the 28-member bloc get access to digital services. |
| That ranges from privacy complaints over how Facebook uses people’s online information to questions about Apple’s tax affairs from its headquarters in low-tax Ireland. These cases come after previous antitrust investigations into how the likes of Microsoft and Intel operated across regions. | That ranges from privacy complaints over how Facebook uses people’s online information to questions about Apple’s tax affairs from its headquarters in low-tax Ireland. These cases come after previous antitrust investigations into how the likes of Microsoft and Intel operated across regions. |
| Google denies that it has breached the region’s tough competition laws, and it will have several months to respond to the charges from the European Commission, the executive arm of the European Union. | Google denies that it has breached the region’s tough competition laws, and it will have several months to respond to the charges from the European Commission, the executive arm of the European Union. |
| “Anyone can use Android with or without Google applications,” Mark Jansen, a Google spokesman, said in a statement when asked about the company’s mobile software. “Hardware manufacturers and carriers can decide how to use Android, and consumers have the last word about which apps they want to use on their devices.” | “Anyone can use Android with or without Google applications,” Mark Jansen, a Google spokesman, said in a statement when asked about the company’s mobile software. “Hardware manufacturers and carriers can decide how to use Android, and consumers have the last word about which apps they want to use on their devices.” |
| A spokesman for the European Commission declined to comment. | A spokesman for the European Commission declined to comment. |
| Despite the company’s denials, the expected charges linked to Android, which powers 77 percent of European smartphones, would represent a major setback for the Silicon Valley company as it grapples with a growing number of global competition investigations into Google’s vast operations. | Despite the company’s denials, the expected charges linked to Android, which powers 77 percent of European smartphones, would represent a major setback for the Silicon Valley company as it grapples with a growing number of global competition investigations into Google’s vast operations. |
| The case against Android also comes as Google is trying to strengthen its position on mobile — increasingly the primary way that people go online — as its traditional desktop business has started to show some signs of fatigue. | |
| Europe’s antitrust officials have already accused Google of unfairly abusing its dominant market position across the 28-member bloc to favor some of its own search services. A conclusion into those separate charges is expected within months, and it could lead to a fine exceeding $7 billion, equivalent to about 10 percent of Google’s most recent annual revenue, the maximum allowable fine. | Europe’s antitrust officials have already accused Google of unfairly abusing its dominant market position across the 28-member bloc to favor some of its own search services. A conclusion into those separate charges is expected within months, and it could lead to a fine exceeding $7 billion, equivalent to about 10 percent of Google’s most recent annual revenue, the maximum allowable fine. |
| The Federal Trade Commission in Washington is also looking into whether Google broke American antitrust laws by using its Android operating system to bolster the company’s products. American officials previously investigated claims that Google’s search services violated federal competition rules, though they eventually decided not to bring charges. | The Federal Trade Commission in Washington is also looking into whether Google broke American antitrust laws by using its Android operating system to bolster the company’s products. American officials previously investigated claims that Google’s search services violated federal competition rules, though they eventually decided not to bring charges. |
| Other countries, including India and Russia, have similarly either accused the company of breaking antitrust rules or opened antitrust investigations into Google’s activities. | Other countries, including India and Russia, have similarly either accused the company of breaking antitrust rules or opened antitrust investigations into Google’s activities. |
| Apple continues to generate the largest share of revenue from global smartphone sales. The company also bundles its own services, including digital maps, into its mobile software, but has yet to face similar questions over whether it has broken Europe’s antitrust rules. | Apple continues to generate the largest share of revenue from global smartphone sales. The company also bundles its own services, including digital maps, into its mobile software, but has yet to face similar questions over whether it has broken Europe’s antitrust rules. |
| Google does not make money from licensing its basic Android software to cellphone manufacturers, but instead earns revenue through digital services like advertising from search, among other mobile services. It holds more than 80 percent of the smartphone operating system market worldwide, according to the technology research company Gartner. | Google does not make money from licensing its basic Android software to cellphone manufacturers, but instead earns revenue through digital services like advertising from search, among other mobile services. It holds more than 80 percent of the smartphone operating system market worldwide, according to the technology research company Gartner. |
| If European officials demand that the company provide rivals greater access to the Android universe — a possibility if Google is found to have broken the region’s laws — the search giant may find it more difficult to promote its own mobile services to users worldwide as well as to smartphone makers. | If European officials demand that the company provide rivals greater access to the Android universe — a possibility if Google is found to have broken the region’s laws — the search giant may find it more difficult to promote its own mobile services to users worldwide as well as to smartphone makers. |
| As part of the charges to be announced as soon as Wednesday, Margrethe Vestager, Europe’s antitrust chief, is expected to focus on Google’s deals with cellphone manufacturers that include bundles of Google services included in Android. | As part of the charges to be announced as soon as Wednesday, Margrethe Vestager, Europe’s antitrust chief, is expected to focus on Google’s deals with cellphone manufacturers that include bundles of Google services included in Android. |
| Speaking in Amsterdam on Monday, Ms. Vestager said that these deals may have hindered competition by forcing cellphone manufacturers to rely on Google’s mobile services that come preinstalled on certain versions of the Android software. | Speaking in Amsterdam on Monday, Ms. Vestager said that these deals may have hindered competition by forcing cellphone manufacturers to rely on Google’s mobile services that come preinstalled on certain versions of the Android software. |
| “Our concern is that, by requiring phone makers and operators to preload a set of Google apps, rather than letting them decide for themselves which apps to load, Google might have cut off one of the main ways that new apps can reach customers,” Ms. Vestager said ahead of the charges being announced. | “Our concern is that, by requiring phone makers and operators to preload a set of Google apps, rather than letting them decide for themselves which apps to load, Google might have cut off one of the main ways that new apps can reach customers,” Ms. Vestager said ahead of the charges being announced. |
| The case related to Google’s Android operating system has been long expected. | The case related to Google’s Android operating system has been long expected. |
| In 2013, Europe said it had received an official complaint from FairSearch Europe, a group of Google’s competitors, including Oracle and Nokia, among others. Aptoide, a Portuguese Android online marketplace, also filed a complaint against Google in 2014. | In 2013, Europe said it had received an official complaint from FairSearch Europe, a group of Google’s competitors, including Oracle and Nokia, among others. Aptoide, a Portuguese Android online marketplace, also filed a complaint against Google in 2014. |
| These companies say that they have been financially hurt by Google practices that they call unfair, an accusation the company rejects. | These companies say that they have been financially hurt by Google practices that they call unfair, an accusation the company rejects. |
| In response to these complaints, the European Commission announced last year that it would investigate Google’s dominant role in the Android operating system, and whether rivals had been treated unfairly. | In response to these complaints, the European Commission announced last year that it would investigate Google’s dominant role in the Android operating system, and whether rivals had been treated unfairly. |
| “Consumers deserve more choice and innovation in mobile devices and applications,” said Thomas Vinje, a lawyer for FairSearch. “A statement of objections in the Android case would be an important step forward for competition and consumers.” | “Consumers deserve more choice and innovation in mobile devices and applications,” said Thomas Vinje, a lawyer for FairSearch. “A statement of objections in the Android case would be an important step forward for competition and consumers.” |
| Google says that its partnerships with cellphone makers that rely on its operating system are voluntary, and that these relationships offer benefits to consumers as well as manufacturers. | Google says that its partnerships with cellphone makers that rely on its operating system are voluntary, and that these relationships offer benefits to consumers as well as manufacturers. |
| Europe’s latest antitrust charges represent one of the first major challenges for Sundar Pichai, who took over as Google’s chief executive after a reorganization last year. Google is now owned by a holding company called Alphabet, which reports its quarterly earnings on Thursday. | Europe’s latest antitrust charges represent one of the first major challenges for Sundar Pichai, who took over as Google’s chief executive after a reorganization last year. Google is now owned by a holding company called Alphabet, which reports its quarterly earnings on Thursday. |
| In February, Mr. Pichai traveled to Brussels to meet with Ms. Vestager and other European politicians, including Günther Oettinger, a German politician in charge of the digital economy in the bloc. Eric E. Schmidt, Alphabet’s executive chairman, has also been a regular visitor to Europe, meeting often with regional officials, in part to discuss the company’s continuing antitrust problems. | In February, Mr. Pichai traveled to Brussels to meet with Ms. Vestager and other European politicians, including Günther Oettinger, a German politician in charge of the digital economy in the bloc. Eric E. Schmidt, Alphabet’s executive chairman, has also been a regular visitor to Europe, meeting often with regional officials, in part to discuss the company’s continuing antitrust problems. |
| Mr. Pichai is no stranger to competition struggles. In 2009, he wrote to European officials explaining why they should take a hard line against Microsoft on charges that the company had abused its then-dominant position in web browsers. Microsoft eventually paid more than $3 billion in fines for breaking the region’s antitrust rules. | Mr. Pichai is no stranger to competition struggles. In 2009, he wrote to European officials explaining why they should take a hard line against Microsoft on charges that the company had abused its then-dominant position in web browsers. Microsoft eventually paid more than $3 billion in fines for breaking the region’s antitrust rules. |
| Now, Google faces mounting pressure over accusations it abused its position in everything from online search to its Android operating system. And it is the turn of Mr. Pichai, along with other Google executives, to respond. | Now, Google faces mounting pressure over accusations it abused its position in everything from online search to its Android operating system. And it is the turn of Mr. Pichai, along with other Google executives, to respond. |