German watchdog: Google hinders competition by bundling Automotive services

The German competition watchdog Bundeskartellamt has stated in its preliminary opinion of its antitrust investigation into Google Automotive that some components of this operating system may impede competition.

Especially the fact that Google only offers its infotainment system services as a bundle, the Bundeskartellamt finds objectionable. The watchdog argues that this reduces the chance for competitors to offer their competing services individually. The Google Automotive services include Google Maps, voice assistant Google Assistant and a modified version of the Google Play Store. In addition, the Android Automotive Operating System, on which the aforementioned services run, is also part of the bundle.

Google has agreements with car manufacturers about how these services should be presented in the infotainment system, according to the watchdog. For example, in some cases they should be set as default or displayed before competing applications. According to the Bundeskartellamt, this can be seen as a barrier to market entry, because alternative services have so little chance of being noticed by users. The German watchdog states that Google has already strengthened its market position on smartphones in this way.

In addition, Google is said to have agreements with car manufacturers that allow Google Assistant to be the only voice assistant to be integrated into the infotainment system. In return, car manufacturers would receive a share of the advertising revenue generated by Google Assistant. Google could also prohibit interoperability with third-party services in its entirety for other services, according to the market regulator. feed. Google now has the opportunity to respond to the Bundeskartellamt’s objections. It is not mentioned when the watchdog will issue its final verdict.

Currently, cars from Renault, Volvo and Polestar, among others, use Google Automotive. This is different from Android Auto, by the way. The latter is Google’s version of Apple’s Carplay and allows users to link their phone to the car.