Google has made a move to address competition concerns in Germany by proposing remedies to resolve objections raised by the country’s Federal Cartel Office (FCO) over its automotive services bundling. The tech giant’s offer includes unbundling some services and removing contractual restrictions imposed on vehicle manufacturers. These proposed remedies will be subjected to a market test by the German competition regulator to determine if they sufficiently address the identified issues.
Key Takeaway
Google has proposed remedies to address competition concerns in Germany by offering to unbundle certain services and remove contractual restrictions on vehicle manufacturers, subject to a market test by the German competition regulator.
Google’s Competition Concerns
The FCO had previously raised objections over Google’s bundling of services such as Google Maps, Google Play, and Google Assistant in its Google Automotive Services (GAS) offer to vehicle manufacturers. Additionally, concerns were raised about Google’s practice of granting ad revenue share only if vehicle makers refrained from pre-installing other voice assistants alongside Google’s own voice AI. The FCO also highlighted issues with interoperability and limitations on third-party services included in GAS.
Proposed Remedies
Google’s proposed remedies include offering three additional products separately from the GAS product bundle, namely Google Maps OEM Software Development Kit, Google Play Store, and Cloud Custom Assistant. These offerings aim to enable vehicle makers to develop maps and navigation services equivalent to Google Maps, provide a wider choice of third-party apps for end users, and offer a proprietary AI voice assistant solution for use in vehicles.
Furthermore, Google has offered to remove contractual provisions related to ad revenue sharing and the pre-installation and display of Google services in the infotainment platform. It also aims to enable license holders to combine Google Assistant services with other maps and navigation services and provide technical preconditions for interoperability.
Google’s business was designated as subject to Germany’s special competition abuse control regime in January 2022, and the FCO has previously secured concessions from the tech giant over its data terms. The FCO’s scrutiny of Google’s automotive software and services reflects the broader efforts in Germany and the EU to regulate the digital economy and curb abusive behaviors by digital giants.
