Google may face new antitrust inquiry into Android
SAN FRANCISCO — Google may face a fresh round of U.S. antitrust scrutiny with regulators looking into whether it uses its Android mobile software to stifle competition.
The Federal Trade Commission is in the early stages of examining whether Google harms competitors by giving priority to its own applications and services such as search on Android devices, according to a person familiar with the situation who was not authorized to discuss it publicly.
The FTC has not contacted Google to ask questions related to the probe, the person said.
Regulators have met with mobile application developers who allege Google puts rivals at a disadvantage, according to Bloomberg News which reported early Friday that the FTC was looking into Android.
Google declined to comment. The FTC also declined to comment.
Google bundles its products, such as search, email and maps, into its Android mobile software which critics say abuses its dominant market position. The European Union is probing whether that practice harms rival applications as well as device manufacturers.
Device manufacturers have to agree to put Google search prominently on devices if they license Google's free Android mobile software.
Hiroshi Lockheimer, who heads up Android, defended that agreement in a blog post in April after European Union officials launched an antitrust inquiry into Android.
Lockheimer said Google’s agreements with device manufacturers ensure that Android phones work well when people buy them by pre-loading basic services such as email and maps. He also said rival services are allowed to pre-install their own apps and services.
"The reality is that the environment Google faces is more competitive today than when the FTC closed its first investigation," said Christopher S. Yoo, professor of law and computer and information science at the University of Pennsylvania. "What we have to remember is that Android is an open-source platform and that means anyone who is unhappy with the terms to access the Android platform can develop their own version as many Chinese manufacturers have done."
The FairSearch.org coalition, a group that represents Microsoft and Oracle among other companies, disagrees, saying Google's practices make it far tougher for rivals to compete with Google apps and reach consumers.
"We welcome news of the Federal Trade Commission’s investigation into Google’s dominance of the mobile market. 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 FairSearch.org coalition said in an emailed statement.
It has been two years since the FTC settled its last investigation with Google over alleged Web search bias.
Google's Android mobile software is the world's most popular. In the U.S. it accounted for 59% of the market while Apple's iPhone software had 38%, according to research firm International Data Corp.
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Antitrust regulators the world over from Mexico to India are investigating Google for anticompetitive practices. The biggest threat is in Europe where regulators have charged the Internet giant with abusing its dominance in search and is also probing Android.
South Korean authorities conducted a two-year antitrust investigation of Google's Android mobile software, but dropped the case in 2013 after finding no wrongdoing.
Should regulators, particularly in the USA or Europe, move forward with their investigations, it could spell big trouble for Google which wants consumers the world over using its apps and services, said Boston University law professor Keith Hylton.
"Losing the ability to bundle its apps with Android would be undesirable for Google and would be a knock on its revenue stream," Hylton said.