EU Court Ruling Underscores Interoperability, Backs Italy’s Google Android Auto Antitrust Fine

The EU court has upheld Italy’s €102 million fine against US tech giant Google in the Android Auto antitrust case. Europe’s highest court termed Google’s move to deny Enel’s e-mobility app access to its Android Auto platform as an abuse of its market dominance, Yahoo Finance reported.

Interoperability Argument

In 2021, Italy’s antitrust authority slapped Google with a $106.7 million fine after the search giant blocked Enel’s JuicePass on Android Auto access. The software helps drivers to navigate roads using maps on their dashboards. The application also allows drivers to send messages while on the road. In its defense, Google said its decision to turn down JuicePass’ Android Auto compatibility request to prevent driver distractions.

The company also cited its lack of absence specifics as a reason to deny the access. The tech giant challenged the Italian antitrust fine against Google at the Italian Council of State. The Council approached the Court of Justice of the European Union (CJEU) for guidance, leading to the latest ruling.

“A refusal by an undertaking in a dominant position to ensure that its platform is interoperable with an app of another undertaking, which thereby becomes more attractive, can be abusive,” Judges at the Luxembourg-based CJEU said.

The judges proceeded to say that Google abused its dominance because it developed its platform to enable third-party entities to use it.

“ There can also be abuse where, as appears to be the situation in the present case, the undertaking in a dominant position did not develop the platform solely for the needs of its own business, but with a view to enabling third-party undertakings to use it and where that platform is not indispensable for the commercial operation of an app developed by a third-party undertaking but is such as to make that app more attractive to consumers,” the Judges added.

Far Reaching Impact

Google has already resolved the matter with the Italian regulator. However, the impact of the ECJ ruling on tech companies will be far reaching as it could guide decisions on similar actions by dominant companies in future.

When issuing the ruling, the European Court of Justice (ECJ) added that big techs can justify their decisions where they lack templates for the category of apps involved. The court added that granting interoperability in such situations could compromise the integrity or security of the platform. Where none of these exemptions apply, the court said that dominant tech firms should develop the necessary templates within a reasonable time.
The ECJ also weighed in on the issue of cost for developing such payments in their ruling.

“It is necessary to take account of the needs of the third-party undertaking which requested that development, the actual cost of the development and the right of the undertaking in a dominant position to derive an appropriate benefit from it,” they said.

Google’s Response

Google says that it has already developed the feature that Enel had requested. According to the big tech, the feature is only useful to 0.04$ of vehicles in Italy. The search giant has expressed disappointment with the ruling.

“Whilst we have now launched the feature Enel requested, it was relevant for only 0.04% of cars in Italy when Enel originally asked for it. We prioritise building the features drivers need most because we believe that innovation should be driven by user demand, not specific companies’ requests. We’re disappointed with this ruling and we will now review it in detail,” Google Spokesperson wrote.

The EU Digital Markets Act outlines rules for interoperability requirements on giant tech companies. The ECJ ruling is final, Google cannot appeal against it. However, the Italian Council of State will have to make a ruling on Google’s appeal in line with the ruling.