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The German competition authority investigates Google for abusing its domain and the use of user data

2021-05-26T15:22:36.616Z


Facebook and Amazon are also in the crosshairs of this organization Two people use their laptops in front of the Google logo at the fair in Hannover, Germany, in 2017.Jens Meyer / AP Germany opens another battle against the big technology of the Internet. The independent authority that ensures competition in the German markets, the Bundeskartellamt, has initiated proceedings against Google to analyze whether it occupies a market position that hinders or prevents


Two people use their laptops in front of the Google logo at the fair in Hannover, Germany, in 2017.Jens Meyer / AP

Germany opens another battle against the big technology of the Internet. The independent authority that ensures competition in the German markets, the Bundeskartellamt, has initiated proceedings against Google to analyze whether it occupies a market position that hinders or prevents competition. An amendment to the German competition law that came into effect in January this year makes it easier to investigate the behavior of large digital corporations and act quickly by banning practices it deems inappropriate. In this period the Bundeskartellamt has already focused on three platforms: in January it announced a procedure against Facebook and last week another against Amazon.

In addition to examining Google's market position, the regulator will analyze in another procedure, initiated in parallel, how the company directed by Sundar Pichai manages Internet user data.

“Google's business model is fundamentally based on the processing of its users' data.

Google has a strategic advantage, "said Andreas Mundt, president of the organization, in a statement.

A central question for the investigation will be whether "Google offers enough options to consumers about the use of their data when they want to use the company's services," he added.

In Europe it is considered that if consent is the legal basis for processing data, it must be informed and freely given.

The regulator suspects that this consent is forced or manipulated.

More information

  • The European Commission fines Google 1,490 million for abusing its dominance in the advertising market

  • The US sues Google for abusing its position against the competition

The German antitrust office prohibited Facebook in 2019 -before the current amendment to the law- from using user data collected on other of its platforms, such as WhatsApp or Instagram, or from other internet pages, without express consent. after a three-year investigation that with these practices Facebook abused its dominant market position. According to the Bundeskartellamt, if a user did not give their consent, the WhatsApp data should not be crossed with their Facebook profile to obtain the profiles with which Facebook offers targeted advertising. The case ended up in court. Last June the Federal Court of Justice agreed with the competition authority, but the company's resources keep the process open,now waiting for the European Court of Justice to rule. This decision could take months or years.

"Due to the large number of digital services offered by Google, such as the search engine, YouTube, Google Maps, the Android operating system or the Chrome browser, the company can be considered of utmost importance for competition in the market" said Mundt about the procedure opened on Tuesday. The investigation is directed against Google Germany (based in Hamburg, Germany), Google Ireland (based in Dublin, Ireland) and Alphabet (the parent company, in Mountain View, California, United States).

The European governments, as well as the European Commission, are trying to limit the domain over the data of individuals and companies exercised by large technology companies. Brussels last year announced a formal investigation into Apple for possible restrictions on competition through its App Store and its payment service Apple Pay. There is also a proceeding against the

online

sales giant

Amazon over the abuse of its dominance position by using information from the companies that use the platform to market their products.

Source: elparis

All business articles on 2021-05-26

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