FTC Looking at Complaints Over Google's Android Control--Update
September 25 2015 - 2:36PM
Dow Jones News
By Brent Kendall And Alistair Barr
The Federal Trade Commission is looking at complaints that
Google Inc. uses its Android operating system for smartphones to
favor its search and services at the expense of rivals, according
to people familiar with the matter.
The FTC's examination of Android-related issues is in its early
stages, and it isn't clear the commission will allocate significant
resources to mount a detailed probe.
The FTC hasn't contacted Google to ask questions related to a
probe of Android, according to one person familiar with the
matter.
FTC officials have held meetings recently with app developers
and other providers of online services who have complained about
Google's control over Android, one person familiar with the
meetings said. Among the questions the FTC is exploring is whether
Google uses Android to enhance its lead in online search, this
person said.
Smartphone makers are free to not use Google's licensed Android
operating system. But to get access to Google's Play app store and
other services that enhance Android phones, they have to agree to
put Google's search service prominently on the devices.
Hiroshi Lockheimer, head of Android, defended its arrangements
with smartphone makers in a blog in April, after European officials
launched their own investigation.
Mr. Lockheimer said Google's agreements with manufacturers
ensured that Android phones would work well when people first
bought them, by getting basic services like email and maps
preinstalled and functioning harmoniously.
Mr. Lockheimer also said that even smartphone makers who use
Google's licensed version of Android are allowed to preload, in
prominent positions, apps and services from Google rivals like
Facebook Inc. and Microsoft Corp.
But FairSearch, a coalition of large technology companies that
includes Google rival Microsoft Corp., said Google has misused its
position and welcomed the FTC's interest in Android.
"Google has used a range of anticompetitive tactics, carrying on
a troubling pattern of conduct that has made it more difficult and
expensive for fresh, innovative companies to reach the market," the
group, which has long been critical of Google, said in a
statement.
The FTC previously conducted a detailed investigation of whether
Google abused its dominance in Internet search, but closed that
probe in early 2013 without bringing a case.
In that inquiry, FTC staffers concluded Google had biased its
search results to benefit its own services and hurt rivals. But in
what they termed "a close call," the staffers recommended against a
broad lawsuit, citing legal hurdles and Google's "strong
procompetitive justifications" for its actions.
FTC competition officials in the previous investigation
recommended challenging three Google practices, including its
alleged "scraping" of content from rival websites. The commission
agreed to close its investigation after Google agreed to make
voluntary changes to those practices.
The companies that have complained to the FTC recently about
Google include app developers and other providers of online
services. They say they have been hampered in their attempts to get
prominent positioning on Android phones or to win the status of a
preinstalled, default app for their products.
The FTC declined to address the issue. "FTC investigations are
nonpublic and we do not comment on an investigation or the
existence of an investigation," said spokesman Justin Cole.
European antitrust officials are several months into a formal
investigation of whether Google uses Android to stifle competition.
The European Commission launched a full probe in April after
several years of informal investigation.
Separately, the European Commission, the European Union's
executive arm, also has formally charged Google with skewing its
search results to favor its own shopping services.
Bloomberg reported earlier Friday that the FTC was examining
Android-related issues.
Write to Brent Kendall at brent.kendall@wsj.com and Alistair
Barr at alistair.barr@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 25, 2015 15:21 ET (19:21 GMT)
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